DuPont Decomposition
Why does SANDUMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.9% = 15.2% × 0.55 × 2.15
Latest: FY2025
Profitability
Net Margin
15.2%
30.2% →15.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.55x
0.83x →0.55x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.15x
1.63x →2.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 22.8 pp over 4 years. Driven by net margin declining (30.2% → 15.2%), asset turnover declining (0.83x → 0.55x), leverage rising (1.63x → 2.15x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 30.2% | 0.83 | 1.63 | 40.7% |
| FY2023 | ₹0Cr | ₹0Cr | 12.8% | 0.83 | 1.31 | 14.0% |
| FY2024 | ₹0Cr | ₹0Cr | 29.6% | 0.21 | 1.20 | 7.6% |
| FY2025 | ₹0Cr | ₹0Cr | 15.2% | 0.55 | 2.15 | 17.9% |
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.