DuPont Decomposition
Why does SEAMECLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.3% = 26.4% × 0.51 × 1.43
Latest: FY2026
Profitability
Net Margin
26.4%
23.8% →26.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.36x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
1.30x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.2 pp over 5 years. Driven by net margin improving (23.8% → 26.4%), asset turnover improving (0.36x → 0.51x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 23.8% | 0.36 | 1.30 | 11.1% |
| FY2023 | ₹0Cr | ₹0Cr | 7.6% | 0.41 | 1.35 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 16.5% | 0.52 | 1.54 | 13.1% |
| FY2025 | ₹0Cr | ₹0Cr | 13.8% | 0.47 | 1.37 | 8.9% |
| FY2026 | ₹0Cr | ₹0Cr | 26.4% | 0.51 | 1.43 | 19.3% |
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.