DuPont Decomposition
Why does ADANIPORTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.1% = 36.4% × 0.23 × 2.08
Latest: FY2025
Profitability
Net Margin
36.4%
19.7% →36.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.23x
0.05x →0.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.08x
2.52x →2.08x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.6 pp over 3 years. Driven by net margin improving (19.7% → 36.4%), asset turnover improving (0.05x → 0.23x), leverage falling (2.52x → 2.08x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 19.7% | 0.05 | 2.52 | 2.5% |
| FY2024 | ₹0Cr | ₹0Cr | 31.7% | 0.02 | 2.82 | 2.1% |
| FY2025 | ₹0Cr | ₹0Cr | 36.4% | 0.23 | 2.08 | 17.1% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.