DuPont Decomposition
Why does SAURASHCEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.5% = 0.9% × 1.05 × 1.65
Latest: FY2026
Profitability
Net Margin
0.9%
1.6% →0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
1.03x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.65x
1.54x →1.65x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 5 years.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.6% | 1.03 | 1.54 | 2.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.4% | 1.20 | 1.54 | -2.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 1.13 | 1.69 | 6.1% |
| FY2025 | ₹0Cr | ₹0Cr | 0.5% | 0.96 | 1.69 | 0.7% |
| FY2026 | ₹0Cr | ₹0Cr | 0.9% | 1.05 | 1.65 | 1.5% |
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.