DuPont Decomposition
Why does SENORES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.2% = 15.3% × 0.31 × 1.51
Latest: FY2025
Profitability
Net Margin
15.3%
7.0% →15.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.31x
0.24x →0.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
1.62x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.5 pp over 4 years. Driven by net margin improving (7.0% → 15.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.0% | 0.24 | 1.62 | 2.7% |
| FY2023 | ₹0Cr | ₹0Cr | 23.9% | 0.27 | 2.88 | 18.5% |
| FY2024 | ₹0Cr | ₹0Cr | 14.9% | 0.34 | 2.68 | 13.6% |
| FY2025 | ₹0Cr | ₹0Cr | 15.3% | 0.31 | 1.51 | 7.2% |
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.