DuPont Decomposition
Why does SAHYADRI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.1% = 4.3% × 1.27 × 1.31
Latest: FY2026
Profitability
Net Margin
4.3%
11.4% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.27x
1.15x →1.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.54x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.2 pp over 5 years. Driven by net margin declining (11.4% → 4.3%), asset turnover improving (1.15x → 1.27x), leverage falling (1.54x → 1.31x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.4% | 1.15 | 1.54 | 20.3% |
| FY2023 | ₹0Cr | ₹0Cr | 6.3% | 1.06 | 1.66 | 11.1% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.13 | 1.56 | 7.3% |
| FY2025 | ₹0Cr | ₹0Cr | 3.2% | 1.11 | 1.44 | 5.1% |
| FY2026 | ₹0Cr | ₹0Cr | 4.3% | 1.27 | 1.31 | 7.1% |
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.