DuPont Decomposition
Why does SANDESH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.7% = 26.4% × 0.20 × 1.07
Latest: FY2025
Profitability
Net Margin
26.4%
14.3% →26.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.20x
0.07x →0.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.07x
1.06x →1.07x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.7 pp over 3 years. Driven by net margin improving (14.3% → 26.4%), asset turnover improving (0.07x → 0.20x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.3% | 0.07 | 1.06 | 1.1% |
| FY2024 | ₹0Cr | ₹0Cr | 83.6% | 0.06 | 1.07 | 5.7% |
| FY2025 | ₹0Cr | ₹0Cr | 26.4% | 0.20 | 1.07 | 5.7% |
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.