DuPont Decomposition
Why does ANIKINDS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.8% = 2.7% × 0.26 × 1.11
Latest: FY2025
Profitability
Net Margin
2.7%
4.1% →2.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.32x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.11x
1.94x →1.11x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.8 pp over 4 years. Driven by net margin declining (4.1% → 2.7%), leverage falling (1.94x → 1.11x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.1% | 0.32 | 1.94 | 2.5% |
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 0.26 | 1.14 | 1.3% |
| FY2024 | ₹0Cr | ₹0Cr | 0.3% | 0.23 | 1.08 | 0.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.7% | 0.26 | 1.11 | 0.8% |
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.