DuPont Decomposition
Why does ANUP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.0% = 13.4% × 0.85 × 1.40
Latest: FY2026
Profitability
Net Margin
13.4%
22.2% →13.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.53x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.34x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~16%. Driven by net margin declining (22.2% → 13.4%), asset turnover improving (0.53x → 0.85x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 22.2% | 0.53 | 1.34 | 15.8% |
| FY2023 | ₹0Cr | ₹0Cr | 12.7% | 0.63 | 1.47 | 11.8% |
| FY2024 | ₹0Cr | ₹0Cr | 19.1% | 0.67 | 1.53 | 19.6% |
| FY2025 | ₹0Cr | ₹0Cr | 16.1% | 0.79 | 1.51 | 19.3% |
| FY2026 | ₹0Cr | ₹0Cr | 13.4% | 0.85 | 1.40 | 16.0% |
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.