DuPont Decomposition
Why does SATIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.3% = 7.8% × 1.05 × 1.38
Latest: FY2025
Profitability
Net Margin
7.8%
11.3% →7.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
0.72x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
2.27x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.2 pp over 4 years. Driven by net margin declining (11.3% → 7.8%), asset turnover improving (0.72x → 1.05x), leverage falling (2.27x → 1.38x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.3% | 0.72 | 2.27 | 18.5% |
| FY2023 | ₹0Cr | ₹0Cr | 10.2% | 1.37 | 1.87 | 26.2% |
| FY2024 | ₹0Cr | ₹0Cr | 12.3% | 1.23 | 1.51 | 22.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.8% | 1.05 | 1.38 | 11.3% |
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.