DuPont Decomposition

Why does ANUHPHR earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

14.5% = 7.2% × 1.31 × 1.55

Latest: FY2025

Profitability

Net Margin

7.2%

6.3% →7.2%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

1.31x

1.40x →1.31x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.55x

1.62x →1.55x

Assets funded by equity vs debt

Trend Analysis

ROE stable at ~15%.

Historical Decomposition

Last 4 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20220Cr0Cr6.3%1.401.6214.3%
FY20230Cr0Cr6.9%1.301.6815.0%
FY20240Cr0Cr9.3%1.451.5320.6%
FY20250Cr0Cr7.2%1.311.5514.5%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.