DuPont Decomposition
Why does AGI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.4% = 12.8% × 0.72 × 1.67
Latest: FY2025
Profitability
Net Margin
12.8%
16.0% →12.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.22x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.67x
1.94x →1.67x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.6 pp over 3 years. Driven by net margin declining (16.0% → 12.8%), asset turnover improving (0.22x → 0.72x), leverage falling (1.94x → 1.67x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 16.0% | 0.22 | 1.94 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 10.3% | 0.19 | 1.85 | 3.6% |
| FY2025 | ₹0Cr | ₹0Cr | 12.8% | 0.72 | 1.67 | 15.4% |
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.