DuPont Decomposition
Why does SIYSIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.8% = 7.8% × 1.17 × 1.50
Latest: FY2026
Profitability
Net Margin
7.8%
11.4% →7.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.17x
1.26x →1.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.50x
1.62x →1.50x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.4 pp over 5 years. Driven by net margin declining (11.4% → 7.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.4% | 1.26 | 1.62 | 23.1% |
| FY2023 | ₹0Cr | ₹0Cr | 11.3% | 1.36 | 1.44 | 22.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 1.30 | 1.41 | 16.3% |
| FY2025 | ₹0Cr | ₹0Cr | 8.9% | 1.18 | 1.47 | 15.4% |
| FY2026 | ₹0Cr | ₹0Cr | 7.8% | 1.17 | 1.50 | 13.8% |
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.