DuPont Decomposition
Why does SASKEN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.3% = 4.8% × 0.95 × 1.36
Latest: FY2026
Profitability
Net Margin
4.8%
29.6% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
0.56x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.36x
1.18x →1.36x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.3 pp over 5 years. Driven by net margin declining (29.6% → 4.8%), asset turnover improving (0.56x → 0.95x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 29.6% | 0.56 | 1.18 | 19.6% |
| FY2023 | ₹0Cr | ₹0Cr | 22.3% | 0.54 | 1.14 | 13.8% |
| FY2024 | ₹0Cr | ₹0Cr | 19.4% | 0.44 | 1.20 | 10.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.1% | 0.57 | 1.22 | 6.4% |
| FY2026 | ₹0Cr | ₹0Cr | 4.8% | 0.95 | 1.36 | 6.3% |
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.