DuPont Decomposition
Why does SHYAMCENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-5.6% = -40.9% × 0.13 × 1.02
Latest: FY2026
Profitability
Net Margin
-40.9%
27.4% →-40.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.13x
1.08x →0.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.02x
1.10x →1.02x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 38.1 pp over 5 years. Driven by net margin declining (27.4% → -40.9%), asset turnover declining (1.08x → 0.13x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 27.4% | 1.08 | 1.10 | 32.5% |
| FY2023 | ₹0Cr | ₹0Cr | 14.7% | 1.00 | 1.13 | 16.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.5% | 0.77 | 1.11 | 0.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -8.2% | 0.61 | 1.10 | -5.6% |
| FY2026 | ₹0Cr | ₹-0Cr | -40.9% | 0.13 | 1.02 | -5.6% |
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.