DuPont Decomposition
Why does SANGINITA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-20.9% = -5.5% × 2.30 × 1.65
Latest: FY2026
Profitability
Net Margin
-5.5%
0.3% →-5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.30x
1.88x →2.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.65x
1.99x →1.65x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.9 pp over 5 years. Driven by net margin declining (0.3% → -5.5%), asset turnover improving (1.88x → 2.30x), leverage falling (1.99x → 1.65x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.3% | 1.88 | 1.99 | 1.1% |
| FY2023 | ₹0Cr | ₹0Cr | 0.3% | 1.87 | 1.98 | 1.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.5% | 1.76 | 2.11 | 1.9% |
| FY2025 | ₹0Cr | ₹0Cr | 0.3% | 2.25 | 1.82 | 1.1% |
| FY2026 | ₹0Cr | ₹-0Cr | -5.5% | 2.30 | 1.65 | -20.9% |
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.