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
15.4% = 8.9% × 1.17 × 1.47
Latest: FY2025
Profitability
Net Margin
8.9%
11.3% →8.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.17x
1.36x →1.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.47x
1.44x →1.47x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.7 pp over 3 years. Driven by net margin declining (11.3% → 8.9%), asset turnover declining (1.36x → 1.17x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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% | 1.17 | 1.47 | 15.4% |
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.