DuPont Decomposition
Why does SANSTAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.6% = 4.7% × 1.24 × 1.15
Latest: FY2025
Profitability
Net Margin
4.7%
3.2% →4.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.24x
2.43x →1.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
2.43x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.0 pp over 4 years. Driven by net margin improving (3.2% → 4.7%), asset turnover declining (2.43x → 1.24x), leverage falling (2.43x → 1.15x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.2% | 2.43 | 2.43 | 18.7% |
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 3.27 | 1.97 | 22.3% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 2.04 | 2.08 | 26.3% |
| FY2025 | ₹0Cr | ₹0Cr | 4.7% | 1.24 | 1.15 | 6.6% |
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.