DuPont Decomposition
Why does AMANTA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.9% = 3.9% × 0.71 × 3.96
Latest: FY2025
Profitability
Net Margin
3.9%
24.1% →3.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
0.59x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.96x
5.84x →3.96x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 72.0 pp over 4 years. Driven by net margin declining (24.1% → 3.9%), asset turnover improving (0.59x → 0.71x), leverage falling (5.84x → 3.96x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 24.1% | 0.59 | 5.84 | 82.9% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.8% | 0.69 | 5.95 | -3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1.3% | 0.79 | 5.31 | 5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 3.9% | 0.71 | 3.96 | 10.9% |
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.