DuPont Decomposition
Why does APCOTEXIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.3% = 7.1% × 1.45 × 1.59
Latest: FY2026
Profitability
Net Margin
7.1%
10.4% →7.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.45x
1.57x →1.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
1.53x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.6 pp over 5 years. Driven by net margin declining (10.4% → 7.1%), asset turnover declining (1.57x → 1.45x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.4% | 1.57 | 1.53 | 24.9% |
| FY2023 | ₹0Cr | ₹0Cr | 10.1% | 1.33 | 1.69 | 22.7% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 1.21 | 1.77 | 10.3% |
| FY2025 | ₹0Cr | ₹0Cr | 3.9% | 1.38 | 1.81 | 9.8% |
| FY2026 | ₹0Cr | ₹0Cr | 7.1% | 1.45 | 1.59 | 16.3% |
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.