DuPont Decomposition
Why does APARINDS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.2% = 4.4% × 1.64 × 2.50
Latest: FY2025
Profitability
Net Margin
4.4%
2.8% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.64x
1.41x →1.64x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.50x
3.85x →2.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.3 pp over 4 years. Driven by net margin improving (2.8% → 4.4%), asset turnover improving (1.41x → 1.64x), leverage falling (3.85x → 2.50x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.8% | 1.41 | 3.85 | 15.0% |
| FY2023 | ₹0Cr | ₹0Cr | 4.5% | 1.74 | 3.67 | 28.5% |
| FY2024 | ₹0Cr | ₹0Cr | 5.1% | 1.67 | 2.48 | 21.3% |
| FY2025 | ₹0Cr | ₹0Cr | 4.4% | 1.64 | 2.50 | 18.2% |
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.