DuPont Decomposition
Why does SAREGAMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.2% = 21.0% × 0.42 × 1.37
Latest: FY2026
Profitability
Net Margin
21.0%
26.9% →21.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.42x
0.34x →0.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.23x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.2 pp over 5 years. Driven by net margin declining (26.9% → 21.0%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 26.9% | 0.34 | 1.23 | 11.1% |
| FY2023 | ₹0Cr | ₹0Cr | 26.2% | 0.41 | 1.27 | 13.8% |
| FY2024 | ₹0Cr | ₹0Cr | 26.1% | 0.37 | 1.38 | 13.4% |
| FY2025 | ₹0Cr | ₹0Cr | 17.4% | 0.56 | 1.32 | 12.9% |
| FY2026 | ₹0Cr | ₹0Cr | 21.0% | 0.42 | 1.37 | 12.2% |
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.