DuPont Decomposition
Why does APOLLOPIPE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.1% = 2.8% × 0.96 × 1.55
Latest: FY2025
Profitability
Net Margin
2.8%
2.6% →2.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
1.38x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
1.45x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 3 years. Driven by asset turnover declining (1.38x → 0.96x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 1.38 | 1.45 | 5.2% |
| FY2024 | ₹0Cr | ₹0Cr | 4.3% | 0.98 | 1.76 | 7.5% |
| FY2025 | ₹0Cr | ₹0Cr | 2.8% | 0.96 | 1.55 | 4.1% |
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.