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
-20.7% = -18.1% × 0.48 × 2.41
Latest: FY2026
Profitability
Net Margin
-18.1%
13.3% →-18.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.75x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.41x
2.26x →2.41x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 43.4 pp over 5 years. Driven by net margin declining (13.3% → -18.1%), asset turnover declining (0.75x → 0.48x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.3% | 0.75 | 2.26 | 22.7% |
| FY2023 | ₹0Cr | ₹0Cr | 4.1% | 0.64 | 2.34 | 6.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -10.2% | 0.47 | 2.64 | -12.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -35.3% | 0.43 | 3.75 | -57.4% |
| FY2026 | ₹0Cr | ₹-0Cr | -18.1% | 0.48 | 2.41 | -20.7% |
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.