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
14.0% = 7.5% × 1.04 × 1.80
Latest: FY2025
Profitability
Net Margin
7.5%
-2.7% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
0.52x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
2.42x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.4 pp over 4 years. Driven by net margin improving (-2.7% → 7.5%), asset turnover improving (0.52x → 1.04x), leverage falling (2.42x → 1.80x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2.7% | 0.52 | 2.42 | -3.4% |
| FY2023 | ₹0Cr | ₹0Cr | 7.6% | 0.87 | 2.43 | 16.1% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 1.07 | 2.09 | 15.4% |
| FY2025 | ₹0Cr | ₹0Cr | 7.5% | 1.04 | 1.80 | 14.0% |
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.