DuPont Decomposition
Why does SIRCA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.0% = 13.1% × 0.83 × 1.29
Latest: FY2025
Profitability
Net Margin
13.1%
13.9% →13.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.83x
0.76x →0.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.17x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.7 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.9% | 0.76 | 1.17 | 12.3% |
| FY2023 | ₹0Cr | ₹0Cr | 17.2% | 0.86 | 1.18 | 17.4% |
| FY2024 | ₹0Cr | ₹0Cr | 16.5% | 0.89 | 1.14 | 16.7% |
| FY2025 | ₹0Cr | ₹0Cr | 13.1% | 0.83 | 1.29 | 14.0% |
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.