DuPont Decomposition
Why does SHEMAROO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-18.1% = -12.4% × 0.79 × 1.85
Latest: FY2025
Profitability
Net Margin
-12.4%
1.4% →-12.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
0.43x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
1.54x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 19.0 pp over 4 years. Driven by net margin declining (1.4% → -12.4%), asset turnover improving (0.43x → 0.79x), leverage rising (1.54x → 1.85x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.4% | 0.43 | 1.54 | 0.9% |
| FY2023 | ₹0Cr | ₹0Cr | 1.7% | 0.54 | 1.77 | 1.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -5.8% | 0.69 | 1.86 | -7.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -12.4% | 0.79 | 1.85 | -18.1% |
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.