DuPont Decomposition
Why does SAKAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.1% = 9.9% × 0.43 × 1.45
Latest: FY2025
Profitability
Net Margin
9.9%
9.7% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.43x
0.12x →0.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.94x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.9 pp over 3 years. Driven by asset turnover improving (0.12x → 0.43x), leverage falling (1.94x → 1.45x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.7% | 0.12 | 1.94 | 2.3% |
| FY2024 | ₹0Cr | ₹0Cr | 7.3% | 0.11 | 1.48 | 1.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.9% | 0.43 | 1.45 | 6.1% |
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.