DuPont Decomposition
Why does AMBUJACEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.0% = 11.8% × 0.45 × 1.51
Latest: FY2026
Profitability
Net Margin
11.8%
7.8% →11.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.45x
0.75x →0.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
1.63x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.6 pp over 4 years. Driven by net margin improving (7.8% → 11.8%), asset turnover declining (0.75x → 0.45x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.8% | 0.75 | 1.63 | 9.5% |
| FY2024 | ₹0Cr | ₹0Cr | 11.0% | 0.50 | 1.57 | 8.6% |
| FY2025 | ₹0Cr | ₹0Cr | 12.8% | 0.41 | 1.51 | 8.0% |
| FY2026 | ₹0Cr | ₹0Cr | 11.8% | 0.45 | 1.51 | 8.0% |
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.