DuPont Decomposition
Why does SEJALLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
28.5% = 4.5% × 0.86 × 7.39
Latest: FY2025
Profitability
Net Margin
4.5%
65.8% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.24x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
7.39x
3.62x →7.39x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 28.9 pp over 3 years. Driven by net margin declining (65.8% → 4.5%), asset turnover improving (0.24x → 0.86x), leverage rising (3.62x → 7.39x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 65.8% | 0.24 | 3.62 | 57.4% |
| FY2024 | ₹0Cr | ₹0Cr | 0.6% | 0.17 | 3.89 | 0.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 0.86 | 7.39 | 28.5% |
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.