DuPont Decomposition
Why does SESHAPAPER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.0% = 4.9% × 0.68 × 1.23
Latest: FY2026
Profitability
Net Margin
4.9%
8.3% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.68x
0.79x →0.68x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.32x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.7 pp over 5 years. Driven by net margin declining (8.3% → 4.9%), asset turnover declining (0.79x → 0.68x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.3% | 0.79 | 1.32 | 8.8% |
| FY2023 | ₹0Cr | ₹0Cr | 19.3% | 0.99 | 1.27 | 24.2% |
| FY2024 | ₹0Cr | ₹0Cr | 15.2% | 0.74 | 1.25 | 14.2% |
| FY2025 | ₹0Cr | ₹0Cr | 6.3% | 0.69 | 1.27 | 5.5% |
| FY2026 | ₹0Cr | ₹0Cr | 4.9% | 0.68 | 1.23 | 4.0% |
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.