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
5.1% = 3.2% × 1.11 × 1.44
Latest: FY2025
Profitability
Net Margin
3.2%
11.4% →3.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.11x
1.15x →1.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.54x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.2 pp over 4 years. Driven by net margin declining (11.4% → 3.2%).
Historical Decomposition
Last 4 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% |
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.