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
42.3% = 23.6% × 1.27 × 1.41
Latest: FY2025
Profitability
Net Margin
23.6%
7.8% →23.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.27x
1.23x →1.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.83x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 24.7 pp over 4 years. Driven by net margin improving (7.8% → 23.6%), leverage falling (1.83x → 1.41x).
Historical Decomposition
Last 4 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% |
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.