DuPont Decomposition
Why does SEPC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.8% = 5.1% × 0.34 × 1.61
Latest: FY2026
Profitability
Net Margin
5.1%
-80.0% →5.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.15x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.61x
3.01x →1.61x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 38.5 pp over 5 years. Driven by net margin improving (-80.0% → 5.1%), asset turnover improving (0.15x → 0.34x), leverage falling (3.01x → 1.61x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -80.0% | 0.15 | 3.01 | -35.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.3% | 0.19 | 1.84 | -0.5% |
| FY2024 | ₹0Cr | ₹0Cr | 4.1% | 0.25 | 1.83 | 1.9% |
| FY2025 | ₹0Cr | ₹0Cr | 4.2% | 0.25 | 1.58 | 1.6% |
| FY2026 | ₹0Cr | ₹0Cr | 5.1% | 0.34 | 1.61 | 2.8% |
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.