DuPont Decomposition
Why does SAGCEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.7% = -0.4% × 0.59 × 2.66
Latest: FY2026
Profitability
Net Margin
-0.4%
4.3% →-0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.47x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.66x
2.68x →2.66x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.2 pp over 5 years. Driven by net margin declining (4.3% → -0.4%), asset turnover improving (0.47x → 0.59x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.3% | 0.47 | 2.68 | 5.5% |
| FY2023 | ₹0Cr | ₹0Cr | 1.4% | 0.53 | 2.10 | 1.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.7% | 0.57 | 2.24 | -2.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -9.3% | 0.54 | 2.42 | -12.2% |
| FY2026 | ₹0Cr | ₹-0Cr | -0.4% | 0.59 | 2.66 | -0.7% |
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.