DuPont Decomposition
Why does AMJLAND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.9% = 28.2% × 0.21 × 1.17
Latest: FY2026
Profitability
Net Margin
28.2%
30.8% →28.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.21x
0.16x →0.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.17x
1.26x →1.17x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~7%. Driven by net margin declining (30.8% → 28.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 30.8% | 0.16 | 1.26 | 6.3% |
| FY2023 | ₹0Cr | ₹0Cr | 19.3% | 0.20 | 1.24 | 4.7% |
| FY2024 | ₹0Cr | ₹0Cr | 19.6% | 0.25 | 1.28 | 6.2% |
| FY2025 | ₹0Cr | ₹0Cr | 26.3% | 0.29 | 1.19 | 9.0% |
| FY2026 | ₹0Cr | ₹0Cr | 28.2% | 0.21 | 1.17 | 6.9% |
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.