DuPont Decomposition
Why does SICALLOG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-86.4% = -11.2% × 0.29 × 26.66
Latest: FY2024
Profitability
Net Margin
-11.2%
-212.7% →-11.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.50x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
26.66x
14.78x →26.66x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1471.8 pp over 2 years. Driven by net margin improving (-212.7% → -11.2%), asset turnover declining (0.50x → 0.29x), leverage rising (14.78x → 26.66x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -212.7% | 0.50 | 14.78 | -1558.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -11.2% | 0.29 | 26.66 | -86.4% |
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.