DuPont Decomposition
Why does SIGACHI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.6% = 14.3% × 0.58 × 1.41
Latest: FY2025
Profitability
Net Margin
14.3%
16.0% →14.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
0.87x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.26x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.0 pp over 4 years. Driven by net margin declining (16.0% → 14.2%), asset turnover declining (0.87x → 0.58x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.0% | 0.87 | 1.26 | 17.6% |
| FY2023 | ₹0Cr | ₹0Cr | 14.4% | 0.81 | 1.39 | 16.2% |
| FY2024 | ₹0Cr | ₹0Cr | 14.3% | 0.57 | 1.62 | 13.3% |
| FY2025 | ₹0Cr | ₹0Cr | 14.3% | 0.58 | 1.41 | 11.6% |
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.