DuPont Decomposition

Why does ATLANTAA earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

20.1% = 62.5% × 0.12 × 2.70

Latest: FY2025

Profitability

Net Margin

62.5%

405.8% →62.5%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.12x

0.29x →0.12x

Revenue per ₹ of assets

Leverage

Equity Multiplier

2.70x

2.94x →2.70x

Assets funded by equity vs debt

Trend Analysis

ROE declined by 321.4 pp over 2 years. Driven by net margin declining (405.8% → 62.5%), asset turnover declining (0.29x → 0.12x), leverage falling (2.94x → 2.70x).

Historical Decomposition

Last 2 years

Year	Revenue	PAT	Net Margin	Asset TO	Leverage	ROE
FY2024	₹0Cr	₹0Cr	405.8%	0.29	2.94	341.4%
FY2025	₹0Cr	₹0Cr	62.5%	0.12	2.70	20.1%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.