DuPont Decomposition
Why does ANANTRAJ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.2% = 20.7% × 0.39 × 1.25
Latest: FY2025
Profitability
Net Margin
20.7%
17.3% →20.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.39x
0.06x →0.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.54x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.5 pp over 3 years. Driven by net margin improving (17.3% → 20.7%), asset turnover improving (0.06x → 0.39x), leverage falling (1.54x → 1.25x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 17.3% | 0.06 | 1.54 | 1.7% |
| FY2024 | ₹0Cr | ₹0Cr | 19.0% | 0.09 | 1.33 | 2.3% |
| FY2025 | ₹0Cr | ₹0Cr | 20.7% | 0.39 | 1.25 | 10.2% |
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.