DuPont Decomposition
Why does ALEMBICLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.3% = 147.1% × 0.08 × 1.07
Latest: FY2025
Profitability
Net Margin
147.1%
130.0% →147.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.02x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.07x
1.06x →1.07x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.0 pp over 3 years. Driven by net margin improving (130.0% → 147.1%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 130.0% | 0.02 | 1.06 | 2.3% |
| FY2024 | ₹0Cr | ₹0Cr | 147.1% | 0.02 | 1.07 | 3.3% |
| FY2025 | ₹0Cr | ₹0Cr | 147.1% | 0.08 | 1.07 | 13.3% |
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.