DuPont Decomposition
Why does AXITA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.9% = 0.5% × 4.32 × 1.32
Latest: FY2026
Profitability
Net Margin
0.5%
1.9% →0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
4.32x
7.33x →4.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
3.00x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 39.6 pp over 5 years. Driven by net margin declining (1.9% → 0.5%), asset turnover declining (7.33x → 4.32x), leverage falling (3.00x → 1.32x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.9% | 7.33 | 3.00 | 42.5% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 6.72 | 1.54 | 32.5% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 11.19 | 1.52 | 31.5% |
| FY2025 | ₹0Cr | ₹0Cr | 0.2% | 8.48 | 1.23 | 1.7% |
| FY2026 | ₹0Cr | ₹0Cr | 0.5% | 4.32 | 1.32 | 2.9% |
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.