DuPont Decomposition
Why does SAFARI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.1% = 8.2% × 1.42 × 1.30
Latest: FY2026
Profitability
Net Margin
8.2%
3.2% →8.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.42x
1.50x →1.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.56x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.6 pp over 5 years. Driven by net margin improving (3.2% → 8.2%), leverage falling (1.56x → 1.30x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.2% | 1.50 | 1.56 | 7.4% |
| FY2023 | ₹0Cr | ₹0Cr | 10.3% | 1.62 | 1.76 | 29.4% |
| FY2024 | ₹0Cr | ₹0Cr | 11.4% | 1.35 | 1.39 | 21.4% |
| FY2025 | ₹0Cr | ₹0Cr | 8.1% | 1.34 | 1.38 | 15.0% |
| FY2026 | ₹0Cr | ₹0Cr | 8.2% | 1.42 | 1.30 | 15.1% |
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.