DuPont Decomposition
Why does SCI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.9% = 23.4% × 0.43 × 1.46
Latest: FY2026
Profitability
Net Margin
23.4%
17.4% →23.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.43x
0.45x →0.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
1.82x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~15%. Driven by net margin improving (17.4% → 23.4%), leverage falling (1.82x → 1.46x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 17.4% | 0.45 | 1.82 | 14.4% |
| FY2023 | ₹0Cr | ₹0Cr | 15.1% | 0.50 | 1.66 | 12.6% |
| FY2024 | ₹0Cr | ₹0Cr | 13.5% | 0.42 | 1.60 | 9.0% |
| FY2025 | ₹0Cr | ₹0Cr | 15.1% | 0.48 | 1.41 | 10.2% |
| FY2026 | ₹0Cr | ₹0Cr | 23.4% | 0.43 | 1.46 | 14.9% |
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.