DuPont Decomposition
Why does SECMARK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.9% = 12.2% × 1.04 × 1.65
Latest: FY2025
Profitability
Net Margin
12.2%
18.1% →12.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
0.53x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.65x
1.16x →1.65x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.7 pp over 4 years. Driven by net margin declining (18.1% → 12.2%), asset turnover improving (0.53x → 1.04x), leverage rising (1.16x → 1.65x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.1% | 0.53 | 1.16 | 11.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -29.9% | 0.57 | 1.68 | -28.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -9.9% | 0.79 | 1.96 | -15.2% |
| FY2025 | ₹0Cr | ₹0Cr | 12.2% | 1.04 | 1.65 | 20.9% |
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.