DuPont Decomposition
Why does SANSERA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.8% = 7.6% × 0.76 × 1.35
Latest: FY2025
Profitability
Net Margin
7.6%
5.7% →7.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.76x
0.25x →0.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.35x
2.11x →1.35x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.7 pp over 3 years. Driven by net margin improving (5.7% → 7.6%), asset turnover improving (0.25x → 0.76x), leverage falling (2.11x → 1.35x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.7% | 0.25 | 2.11 | 3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 0.27 | 2.07 | 3.5% |
| FY2025 | ₹0Cr | ₹0Cr | 7.6% | 0.76 | 1.35 | 7.8% |
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.