DuPont Decomposition
Why does ASTRAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.2% = 8.2% × 1.13 × 1.43
Latest: FY2026
Profitability
Net Margin
8.2%
11.0% →8.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.13x
1.29x →1.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
1.45x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.5 pp over 5 years. Driven by net margin declining (11.0% → 8.2%), asset turnover declining (1.29x → 1.13x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.0% | 1.29 | 1.45 | 20.7% |
| FY2023 | ₹0Cr | ₹0Cr | 8.9% | 1.18 | 1.61 | 16.8% |
| FY2024 | ₹0Cr | ₹0Cr | 9.7% | 1.25 | 1.41 | 17.1% |
| FY2025 | ₹0Cr | ₹0Cr | 9.0% | 1.15 | 1.40 | 14.5% |
| FY2026 | ₹0Cr | ₹0Cr | 8.2% | 1.13 | 1.43 | 13.2% |
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.