DuPont Decomposition
Why does SATIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.6% = 13.3% × 0.17 × 5.02
Latest: FY2026
Profitability
Net Margin
13.3%
1.6% →13.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.17x
0.16x →0.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.02x
4.84x →5.02x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.3 pp over 5 years. Driven by net margin improving (1.6% → 13.3%). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.6% | 0.16 | 4.84 | 1.3% |
| FY2023 | ₹0Cr | ₹0Cr | 0.4% | 0.16 | 4.82 | 0.3% |
| FY2024 | ₹0Cr | ₹0Cr | 23.4% | 0.18 | 4.37 | 18.2% |
| FY2025 | ₹0Cr | ₹0Cr | 8.0% | 0.20 | 4.56 | 7.3% |
| FY2026 | ₹0Cr | ₹0Cr | 13.3% | 0.17 | 5.02 | 11.6% |
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.