DuPont Decomposition
Why does ASTEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-57.3% = -35.3% × 0.43 × 3.75
Latest: FY2025
Profitability
Net Margin
-35.3%
-3.9% →-35.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.43x
0.13x →0.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.75x
2.34x →3.75x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 56.2 pp over 3 years. Driven by net margin declining (-3.9% → -35.3%), asset turnover improving (0.13x → 0.43x), leverage rising (2.34x → 3.75x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -3.9% | 0.13 | 2.34 | -1.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.6% | 0.16 | 2.64 | -0.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -35.3% | 0.43 | 3.75 | -57.3% |
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.