DuPont Decomposition
Why does ASTERDM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
147.3% = 132.2% × 0.62 × 1.81
Latest: FY2025
Profitability
Net Margin
132.2%
5.6% →132.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
0.22x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
3.35x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 143.2 pp over 3 years. Driven by net margin improving (5.6% → 132.2%), asset turnover improving (0.22x → 0.62x), leverage falling (3.35x → 1.81x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.6% | 0.22 | 3.35 | 4.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.2% | 0.05 | 3.95 | -0.1% |
| FY2025 | ₹0Cr | ₹0Cr | 132.2% | 0.62 | 1.81 | 147.3% |
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.