DuPont Decomposition
Why does APLLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.2% = 8.9% × 0.84 × 1.50
Latest: FY2025
Profitability
Net Margin
8.9%
10.8% →8.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.23x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.50x
1.41x →1.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.8 pp over 3 years. Driven by net margin declining (10.8% → 8.9%), asset turnover improving (0.23x → 0.84x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.8% | 0.23 | 1.41 | 3.5% |
| FY2024 | ₹0Cr | ₹0Cr | 11.8% | 0.24 | 1.34 | 3.7% |
| FY2025 | ₹0Cr | ₹0Cr | 8.9% | 0.84 | 1.50 | 11.2% |
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.