DuPont Decomposition
Why does SHYAMMETL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.1% = 6.0% × 0.92 × 1.45
Latest: FY2025
Profitability
Net Margin
6.0%
7.7% →6.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
0.30x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.56x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.4 pp over 3 years. Driven by net margin declining (7.7% → 6.0%), asset turnover improving (0.30x → 0.92x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 0.30 | 1.56 | 3.6% |
| FY2024 | ₹0Cr | ₹0Cr | 6.1% | 0.25 | 1.50 | 2.3% |
| FY2025 | ₹0Cr | ₹0Cr | 6.0% | 0.92 | 1.45 | 8.1% |
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.