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
11.3% = 14.3% × 0.58 × 1.38
Latest: FY2025
Profitability
Net Margin
14.3%
10.1% →14.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
0.19x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.39x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.6 pp over 3 years. Driven by net margin improving (10.1% → 14.2%), asset turnover improving (0.19x → 0.58x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.1% | 0.19 | 1.39 | 2.7% |
| FY2024 | ₹0Cr | ₹0Cr | 14.6% | 0.15 | 1.62 | 3.5% |
| FY2025 | ₹0Cr | ₹0Cr | 14.3% | 0.58 | 1.38 | 11.3% |
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.