DuPont Decomposition
Why does SHILCTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
32.2% = 24.3% × 1.10 × 1.20
Latest: FY2026
Profitability
Net Margin
24.3%
7.8% →24.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.10x
1.23x →1.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.83x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.6 pp over 5 years. Driven by net margin improving (7.8% → 24.3%), asset turnover declining (1.23x → 1.10x), leverage falling (1.83x → 1.20x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.8% | 1.23 | 1.83 | 17.6% |
| FY2023 | ₹0Cr | ₹0Cr | 15.4% | 1.58 | 1.46 | 35.5% |
| FY2024 | ₹0Cr | ₹0Cr | 23.1% | 1.36 | 1.40 | 43.8% |
| FY2025 | ₹0Cr | ₹0Cr | 23.6% | 1.27 | 1.41 | 42.3% |
| FY2026 | ₹0Cr | ₹0Cr | 24.3% | 1.10 | 1.20 | 32.2% |
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.