DuPont Decomposition
Why does SILINV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.0% = 57.7% × 0.02 × 1.10
Latest: FY2025
Profitability
Net Margin
57.7%
71.6% →57.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.02x
0.01x →0.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.08x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by net margin declining (71.6% → 57.7%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 71.6% | 0.01 | 1.08 | 0.8% |
| FY2024 | ₹0.1Cr | ₹0Cr | 36.0% | 0.00 | 1.08 | 0.1% |
| FY2025 | ₹0Cr | ₹0Cr | 57.7% | 0.02 | 1.10 | 1.0% |
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.