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
1.0% = 1.1% × 0.67 × 1.31
Latest: FY2026
Profitability
Net Margin
1.1%
10.2% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.67x
0.91x →0.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.37x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.8 pp over 5 years. Driven by net margin declining (10.2% → 1.1%), asset turnover declining (0.91x → 0.67x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.2% | 0.91 | 1.37 | 12.8% |
| FY2023 | ₹0Cr | ₹0Cr | 25.1% | 1.04 | 1.27 | 33.0% |
| FY2024 | ₹0Cr | ₹0Cr | 19.1% | 0.73 | 1.29 | 17.9% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 0.59 | 1.34 | 4.6% |
| FY2026 | ₹0Cr | ₹0Cr | 1.1% | 0.67 | 1.31 | 1.0% |
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.