DuPont Decomposition
Why does SBGLP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.7% = 30.9% × 0.19 × 2.64
Latest: FY2025
Profitability
Net Margin
30.9%
34.0% →30.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.19x
0.52x →0.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.64x
10.74x →2.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 174.7 pp over 3 years. Driven by net margin declining (34.0% → 30.9%), asset turnover declining (0.52x → 0.19x), leverage falling (10.74x → 2.64x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 34.0% | 0.52 | 10.74 | 190.3% |
| FY2024 | ₹0Cr | ₹0Cr | 38.6% | 0.57 | 2.20 | 48.0% |
| FY2025 | ₹0Cr | ₹0Cr | 30.9% | 0.19 | 2.64 | 15.7% |
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.