DuPont Decomposition
Why does ASTRAMICRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.7% = 16.6% × 0.58 × 1.51
Latest: FY2026
Profitability
Net Margin
16.6%
5.1% →16.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
0.77x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
1.65x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.2 pp over 5 years. Driven by net margin improving (5.1% → 16.6%), asset turnover declining (0.77x → 0.58x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.1% | 0.77 | 1.65 | 6.5% |
| FY2023 | ₹0Cr | ₹0Cr | 8.6% | 0.77 | 1.64 | 10.9% |
| FY2024 | ₹0Cr | ₹0Cr | 13.3% | 0.62 | 1.53 | 12.5% |
| FY2025 | ₹0Cr | ₹0Cr | 14.6% | 0.57 | 1.69 | 14.0% |
| FY2026 | ₹0Cr | ₹0Cr | 16.6% | 0.58 | 1.51 | 14.7% |
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.