DuPont Decomposition
Why does ASIANTILES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.0% = 1.8% × 0.74 × 1.52
Latest: FY2025
Profitability
Net Margin
1.8%
-10.6% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.74x
0.24x →0.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.52x
1.54x →1.52x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.8 pp over 3 years. Driven by net margin improving (-10.6% → 1.8%), asset turnover improving (0.24x → 0.74x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -10.6% | 0.24 | 1.54 | -3.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.3% | 0.22 | 1.50 | -0.4% |
| FY2025 | ₹0Cr | ₹0Cr | 1.8% | 0.74 | 1.52 | 2.0% |
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.