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
8.9% = 13.9% × 0.47 × 1.37
Latest: FY2025
Profitability
Net Margin
13.9%
7.6% →13.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.47x
0.41x →0.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.35x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.7 pp over 3 years. Driven by net margin improving (7.6% → 13.9%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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 | 13.9% | 0.47 | 1.37 | 8.9% |
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.