DuPont Decomposition
Why does AGARIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.4% = 4.8% × 1.78 × 2.14
Latest: FY2025
Profitability
Net Margin
4.8%
4.6% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.78x
2.69x →1.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.14x
1.86x →2.14x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.4 pp over 3 years. Driven by asset turnover declining (2.69x → 1.78x), leverage rising (1.86x → 2.14x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.6% | 2.69 | 1.86 | 22.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.1% | 1.90 | 2.19 | 21.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.8% | 1.78 | 2.14 | 18.4% |
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.