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
14.2% = 9.0% × 1.15 × 1.37
Latest: FY2025
Profitability
Net Margin
9.0%
13.7% →9.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.15x
0.34x →1.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.61x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.6 pp over 3 years. Driven by net margin declining (13.7% → 9.0%), asset turnover improving (0.34x → 1.15x), leverage falling (1.61x → 1.37x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 13.7% | 0.34 | 1.61 | 7.6% |
| FY2024 | ₹0Cr | ₹0Cr | 11.2% | 0.36 | 1.41 | 5.7% |
| FY2025 | ₹0Cr | ₹0Cr | 9.0% | 1.15 | 1.37 | 14.2% |
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.