DuPont Decomposition
Why does ANDHRAPAP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.6% = 5.8% × 0.58 × 1.34
Latest: FY2025
Profitability
Net Margin
5.8%
24.9% →5.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
1.05x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.27x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 28.4 pp over 3 years. Driven by net margin declining (24.9% → 5.8%), asset turnover declining (1.05x → 0.58x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 24.9% | 1.05 | 1.27 | 33.0% |
| FY2024 | ₹0Cr | ₹0Cr | 18.9% | 0.73 | 1.29 | 17.9% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 0.58 | 1.34 | 4.6% |
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.