DuPont Decomposition
Why does ALLDIGI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
32.1% = 15.3% × 1.30 × 1.62
Latest: FY2025
Profitability
Net Margin
15.3%
11.2% →15.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.30x
0.32x →1.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.45x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 26.8 pp over 3 years. Driven by net margin improving (11.2% → 15.2%), asset turnover improving (0.32x → 1.30x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.2% | 0.32 | 1.45 | 5.3% |
| FY2024 | ₹0Cr | ₹0Cr | 16.0% | 0.35 | 1.50 | 8.4% |
| FY2025 | ₹0Cr | ₹0Cr | 15.3% | 1.30 | 1.62 | 32.1% |
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.