DuPont Decomposition

Why does AEGISLOG earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

11.6% = 10.1% × 0.58 × 1.96

Latest: FY2025

Profitability

Net Margin

10.1%

7.4% →10.1%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.58x

0.30x →0.58x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.96x

2.03x →1.96x

Assets funded by equity vs debt

Trend Analysis

ROE improved by 7.1 pp over 3 years. Driven by net margin improving (7.4% → 10.1%), asset turnover improving (0.30x → 0.58x).

Historical Decomposition

Last 3 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20230Cr0Cr7.4%0.302.034.5%
FY20240Cr0Cr17.4%0.231.305.3%
FY20250Cr0Cr10.1%0.581.9611.6%

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)

See DCF fair value for AEGISLOG

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.