DuPont Decomposition
Why does AHLADA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.7% = 2.8% × 0.62 × 1.52
Latest: FY2025
Profitability
Net Margin
2.8%
4.0% →2.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
0.71x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.52x
1.50x →1.52x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.6 pp over 4 years. Driven by net margin declining (4.0% → 2.8%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.0% | 0.71 | 1.50 | 4.2% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 0.82 | 1.57 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 1.13 | 1.66 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 2.8% | 0.62 | 1.52 | 2.7% |
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.