DuPont Decomposition
Why does SAGILITY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.6% = 12.9% × 0.57 × 1.30
Latest: FY2026
Profitability
Net Margin
12.9%
3.4% →12.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
0.40x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.71x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.3 pp over 4 years. Driven by net margin improving (3.4% → 12.9%), asset turnover improving (0.40x → 0.57x), leverage falling (1.71x → 1.30x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 0.40 | 1.71 | 2.3% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 0.45 | 1.66 | 3.5% |
| FY2025 | ₹0Cr | ₹0Cr | 9.7% | 0.50 | 1.33 | 6.5% |
| FY2026 | ₹0Cr | ₹0Cr | 12.9% | 0.57 | 1.30 | 9.6% |
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.