DuPont Decomposition
Why does AIIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
28.9% = 149.1% × 0.18 × 1.10
Latest: FY2025
Profitability
Net Margin
149.1%
74.9% →149.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.18x
0.22x →0.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.29x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.4 pp over 4 years. Driven by net margin improving (74.9% → 149.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 74.9% | 0.22 | 1.29 | 21.4% |
| FY2023 | ₹0Cr | ₹0Cr | 998.1% | 0.06 | 2.02 | 126.0% |
| FY2024 | ₹0Cr | ₹0Cr | 114.8% | 0.12 | 1.12 | 14.9% |
| FY2025 | ₹0Cr | ₹0Cr | 149.1% | 0.18 | 1.10 | 28.9% |
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.