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%
13.7% →17.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.55x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.24x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.0 pp over 3 years. Driven by net margin improving (13.7% → 17.5%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 13.7% | 0.55 | 1.24 | 9.4% |
| FY2024 | ₹0Cr | ₹0Cr | 15.4% | 0.60 | 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.