DuPont Decomposition
Why does SIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-16.9% = -56.8% × 0.18 × 1.67
Latest: FY2026
Profitability
Net Margin
-56.8%
42.1% →-56.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.18x
1.73x →0.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.67x
1.79x →1.67x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 147.4 pp over 5 years. Driven by net margin declining (42.1% → -56.8%), asset turnover declining (1.73x → 0.18x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 42.1% | 1.73 | 1.79 | 130.5% |
| FY2023 | ₹0Cr | ₹0Cr | 103.2% | 0.11 | 1.31 | 14.7% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.5% | 0.15 | 1.29 | -0.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -48.4% | 0.19 | 1.26 | -11.3% |
| FY2026 | ₹0Cr | ₹-0Cr | -56.8% | 0.18 | 1.67 | -16.9% |
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.