DuPont Decomposition
Why does SIGIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.7% = 1.3% × 1.39 × 3.62
Latest: FY2025
Profitability
Net Margin
1.3%
0.9% →1.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.39x
1.22x →1.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.62x
3.68x →3.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.5 pp over 4 years. Driven by asset turnover improving (1.22x → 1.39x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.9% | 1.22 | 3.68 | 4.2% |
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 1.40 | 3.53 | 6.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.3% | 1.58 | 3.49 | 7.0% |
| FY2025 | ₹0Cr | ₹0Cr | 1.3% | 1.39 | 3.62 | 6.7% |
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.