DuPont Decomposition
Why does ANURAS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.3% = 6.7% × 0.27 × 1.85
Latest: FY2025
Profitability
Net Margin
6.7%
14.5% →6.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.27x
0.36x →0.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
1.67x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.5 pp over 4 years. Driven by net margin declining (14.5% → 6.7%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.5% | 0.36 | 1.67 | 8.8% |
| FY2023 | ₹0Cr | ₹0Cr | 11.6% | 0.41 | 1.59 | 7.6% |
| FY2024 | ₹0Cr | ₹0Cr | 8.9% | 0.31 | 1.67 | 4.7% |
| FY2025 | ₹0Cr | ₹0Cr | 6.7% | 0.27 | 1.85 | 3.3% |
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.