DuPont Decomposition
Why does SDBL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.3% = 7.5% × 1.04 × 1.71
Latest: FY2025
Profitability
Net Margin
7.5%
3.3% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
0.53x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.71x
2.43x →1.71x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.0 pp over 3 years. Driven by net margin improving (3.3% → 7.5%), asset turnover improving (0.53x → 1.04x), leverage falling (2.43x → 1.71x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.3% | 0.53 | 2.43 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.7% | 0.63 | 2.08 | 3.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.5% | 1.04 | 1.71 | 13.3% |
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.