DuPont Decomposition
Why does AMDIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.6% = 0.4% × 0.85 × 2.05
Latest: FY2025
Profitability
Net Margin
0.4%
5.5% →0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.98x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.05x
2.26x →2.05x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.5 pp over 3 years. Driven by net margin declining (5.5% → 0.4%), asset turnover declining (0.98x → 0.85x), leverage falling (2.26x → 2.05x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 0.98 | 2.26 | 12.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.6% | 0.86 | 2.07 | -1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 0.4% | 0.85 | 2.05 | 0.6% |
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.