DuPont Decomposition
Why does ASTRON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-62.1% = -58.9% × 0.44 × 2.38
Latest: FY2025
Profitability
Net Margin
-58.9%
-6.1% →-58.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
1.27x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.38x
1.96x →2.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 47.1 pp over 3 years. Driven by net margin declining (-6.1% → -58.9%), asset turnover declining (1.27x → 0.44x), leverage rising (1.96x → 2.38x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -6.1% | 1.27 | 1.96 | -15.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -3.6% | 1.06 | 1.99 | -7.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -58.9% | 0.44 | 2.38 | -62.1% |
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.