DuPont Decomposition
Why does SAHLIBHFI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.4% = 46.3% × 0.18 × 1.27
Latest: FY2025
Profitability
Net Margin
46.3%
27.3% →46.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.18x
0.19x →0.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
2.04x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~10%. Driven by net margin improving (27.3% → 46.3%), leverage falling (2.04x → 1.27x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 27.3% | 0.19 | 2.04 | 10.4% |
| FY2023 | ₹0Cr | ₹0Cr | 30.6% | 0.20 | 1.74 | 10.7% |
| FY2024 | ₹0Cr | ₹0Cr | 37.0% | 0.20 | 1.63 | 12.4% |
| FY2025 | ₹0Cr | ₹0Cr | 46.3% | 0.18 | 1.27 | 10.4% |
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.