DuPont Decomposition
Why does SHREECEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.5% = 8.3% × 0.67 × 1.35
Latest: FY2026
Profitability
Net Margin
8.3%
16.0% →8.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.67x
0.61x →0.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.35x
1.36x →1.35x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.9 pp over 5 years. Driven by net margin declining (16.0% → 8.3%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.0% | 0.61 | 1.36 | 13.4% |
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 0.66 | 1.41 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 11.9% | 0.72 | 1.35 | 11.6% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 0.68 | 1.32 | 5.2% |
| FY2026 | ₹0Cr | ₹0Cr | 8.3% | 0.67 | 1.35 | 7.5% |
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.