DuPont Decomposition
Why does SANGAMIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.2% = 1.1% × 0.94 × 2.94
Latest: FY2025
Profitability
Net Margin
1.1%
4.8% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.94x
0.33x →0.94x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.94x
2.38x →2.94x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~3%. Driven by net margin declining (4.8% → 1.1%), asset turnover improving (0.33x → 0.94x), leverage rising (2.38x → 2.94x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.8% | 0.33 | 2.38 | 3.8% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 0.27 | 2.69 | 1.3% |
| FY2025 | ₹0Cr | ₹0Cr | 1.1% | 0.94 | 2.94 | 3.2% |
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.