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
9.8% = 3.9% × 1.38 × 1.81
Latest: FY2025
Profitability
Net Margin
3.9%
10.0% →3.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.38x
1.34x →1.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
1.69x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.9 pp over 3 years. Driven by net margin declining (10.0% → 3.9%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.0% | 1.34 | 1.69 | 22.7% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 1.22 | 1.77 | 10.3% |
| FY2025 | ₹0Cr | ₹0Cr | 3.9% | 1.38 | 1.81 | 9.8% |
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.