DuPont Decomposition
Why does AMNPLST earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.8% = 6.2% × 1.59 × 1.61
Latest: FY2025
Profitability
Net Margin
6.2%
4.2% →6.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.59x
1.82x →1.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.61x
1.91x →1.61x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.2 pp over 4 years. Driven by net margin improving (4.2% → 6.2%), asset turnover declining (1.82x → 1.59x), leverage falling (1.91x → 1.61x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.2% | 1.82 | 1.91 | 14.7% |
| FY2023 | ₹0Cr | ₹0Cr | 3.8% | 1.74 | 1.88 | 12.5% |
| FY2024 | ₹0Cr | ₹0Cr | 7.3% | 0.46 | 1.77 | 5.9% |
| FY2025 | ₹0Cr | ₹0Cr | 6.2% | 1.59 | 1.61 | 15.8% |
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.