DuPont Decomposition
Why does ALPA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.4% = 17.5% × 0.50 × 1.30
Latest: FY2025
Profitability
Net Margin
17.5%
12.8% →17.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.71x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.28x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~11%. Driven by net margin improving (12.8% → 17.5%), asset turnover declining (0.71x → 0.50x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.8% | 0.71 | 1.28 | 11.6% |
| FY2023 | ₹0Cr | ₹0Cr | 13.6% | 0.55 | 1.24 | 9.3% |
| FY2024 | ₹0Cr | ₹0Cr | 15.6% | 0.59 | 1.20 | 11.0% |
| FY2025 | ₹0Cr | ₹0Cr | 17.5% | 0.50 | 1.30 | 11.4% |
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.