DuPont Decomposition
Why does ATALREAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.3% = 3.7% × 1.07 × 1.33
Latest: FY2025
Profitability
Net Margin
3.7%
5.3% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
0.83x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.33x
1.46x →1.33x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.2 pp over 4 years. Driven by net margin declining (5.3% → 3.7%), asset turnover improving (0.83x → 1.07x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.3% | 0.83 | 1.46 | 6.5% |
| FY2023 | ₹0Cr | ₹0Cr | 5.1% | 0.82 | 1.40 | 5.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 0.71 | 1.53 | 5.7% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 1.07 | 1.33 | 5.3% |
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.