DuPont Decomposition
Why does AHLUCONT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.2% = 4.9% × 1.11 × 2.06
Latest: FY2025
Profitability
Net Margin
4.9%
8.4% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.11x
0.35x →1.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.06x
2.03x →2.06x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.4 pp over 3 years. Driven by net margin declining (8.4% → 4.9%), asset turnover improving (0.35x → 1.11x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.4% | 0.35 | 2.03 | 5.9% |
| FY2024 | ₹0Cr | ₹0Cr | 17.2% | 0.36 | 2.00 | 12.5% |
| FY2025 | ₹0Cr | ₹0Cr | 4.9% | 1.11 | 2.06 | 11.2% |
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.