DuPont Decomposition
Why does AROGRANITE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-6.8% = -16.1% × 0.19 × 2.27
Latest: FY2026
Profitability
Net Margin
-16.1%
4.0% →-16.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.19x
0.50x →0.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.27x
2.30x →2.27x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.3 pp over 5 years. Driven by net margin declining (4.0% → -16.1%), asset turnover declining (0.50x → 0.19x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.0% | 0.50 | 2.30 | 4.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -3.5% | 0.36 | 2.36 | -3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.8% | 0.35 | 2.32 | 0.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -5.2% | 0.29 | 2.26 | -3.5% |
| FY2026 | ₹0Cr | ₹-0Cr | -16.1% | 0.19 | 2.27 | -6.8% |
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.