DuPont Decomposition
Why does AMRUTANJAN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.6% = 11.5% × 0.99 × 1.37
Latest: FY2026
Profitability
Net Margin
11.5%
16.6% →11.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
1.16x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.32x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.7 pp over 5 years. Driven by net margin declining (16.6% → 11.5%), asset turnover declining (1.16x → 0.99x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.6% | 1.16 | 1.32 | 25.3% |
| FY2023 | ₹0Cr | ₹0Cr | 10.5% | 1.04 | 1.25 | 13.7% |
| FY2024 | ₹0Cr | ₹0Cr | 10.7% | 1.15 | 1.27 | 15.6% |
| FY2025 | ₹0Cr | ₹0Cr | 11.3% | 1.07 | 1.29 | 15.6% |
| FY2026 | ₹0Cr | ₹0Cr | 11.5% | 0.99 | 1.37 | 15.6% |
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.