DuPont Decomposition
Why does SEMAC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.8% = 3.0% × 1.18 × 2.51
Latest: FY2026
Profitability
Net Margin
3.0%
2.8% →3.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.18x
0.54x →1.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.51x
1.56x →2.51x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.4 pp over 5 years. Driven by asset turnover improving (0.54x → 1.18x), leverage rising (1.56x → 2.51x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.8% | 0.54 | 1.56 | 2.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.7% | 1.53 | 1.88 | 16.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -25.4% | 0.65 | 2.49 | -40.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -3.4% | 0.78 | 2.99 | -8.1% |
| FY2026 | ₹0Cr | ₹0Cr | 3.0% | 1.18 | 2.51 | 8.8% |
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.