DuPont Decomposition
Why does SAMPANN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.1% = 4.3% × 0.76 × 6.78
Latest: FY2025
Profitability
Net Margin
4.3%
-6.2% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.76x
0.50x →0.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
6.78x
12.39x →6.78x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 60.5 pp over 4 years. Driven by net margin improving (-6.2% → 4.3%), asset turnover improving (0.50x → 0.76x), leverage falling (12.39x → 6.78x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -6.2% | 0.50 | 12.39 | -38.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.9% | 0.58 | 16.56 | -28.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.2% | 0.65 | 21.25 | -16.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.3% | 0.76 | 6.78 | 22.1% |
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.