DuPont Decomposition
Why does ALANKIT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.7% = 6.6% × 0.71 × 1.43
Latest: FY2025
Profitability
Net Margin
6.6%
1.8% →6.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.49x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
1.96x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.9 pp over 4 years. Driven by net margin improving (1.8% → 6.6%), asset turnover improving (0.49x → 0.71x), leverage falling (1.96x → 1.43x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.8% | 0.49 | 1.96 | 1.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -10.8% | 1.03 | 1.88 | -20.9% |
| FY2024 | ₹0Cr | ₹0Cr | 9.2% | 0.44 | 1.92 | 7.8% |
| FY2025 | ₹0Cr | ₹0Cr | 6.6% | 0.71 | 1.43 | 6.7% |
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.