DuPont Decomposition
Why does AUTOIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.5% = 4.7% × 1.10 × 3.80
Latest: FY2026
Profitability
Net Margin
4.7%
1.5% →4.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.10x
1.02x →1.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.80x
8.03x →3.80x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.8 pp over 5 years. Driven by net margin improving (1.5% → 4.7%), leverage falling (8.03x → 3.80x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 1.02 | 8.03 | 12.7% |
| FY2023 | ₹0Cr | ₹0Cr | 1.9% | 1.30 | 5.85 | 14.8% |
| FY2024 | ₹0Cr | ₹0Cr | 2.8% | 1.02 | 4.24 | 12.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.7% | 0.87 | 4.95 | 11.6% |
| FY2026 | ₹0Cr | ₹0Cr | 4.7% | 1.10 | 3.80 | 19.5% |
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.