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
0.7% = 0.5% × 0.96 × 1.69
Latest: FY2025
Profitability
Net Margin
0.5%
1.6% →0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
1.03x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.69x
1.54x →1.69x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.8 pp over 4 years. Driven by net margin declining (1.6% → 0.5%).
Historical Decomposition
Last 4 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% |
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.