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
-25.8% = -15.1% × 0.26 × 6.62
Latest: FY2025
Profitability
Net Margin
-15.1%
-212.7% →-15.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.50x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
6.62x
4.87x →6.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 487.8 pp over 3 years. Driven by net margin improving (-212.7% → -15.1%), asset turnover declining (0.50x → 0.26x), leverage rising (4.87x → 6.62x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -212.7% | 0.50 | 4.87 | -513.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -11.2% | 0.29 | 4.92 | -16.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -15.1% | 0.26 | 6.62 | -25.8% |
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.