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
1.4% = 1.1% × 0.75 × 1.62
Latest: FY2026
Profitability
Net Margin
1.1%
5.9% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
1.02x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.66x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.6 pp over 5 years. Driven by net margin declining (5.9% → 1.1%), asset turnover declining (1.02x → 0.75x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.9% | 1.02 | 1.66 | 10.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -4.7% | 0.81 | 1.53 | -5.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.8% | 0.80 | 1.50 | -1.0% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 0.82 | 1.53 | 0.8% |
| FY2026 | ₹0Cr | ₹0Cr | 1.1% | 0.75 | 1.62 | 1.4% |
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.