DuPont Decomposition
Why does SJVN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.8% = 27.1% × 0.07 × 3.25
Latest: FY2025
Profitability
Net Margin
27.1%
3.4% →27.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.02x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.25x
2.33x →3.25x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.7 pp over 3 years. Driven by net margin improving (3.4% → 27.1%), leverage rising (2.33x → 3.25x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 0.02 | 2.33 | 0.1% |
| FY2024 | ₹0Cr | ₹0Cr | 13.3% | 0.02 | 1.83 | 0.4% |
| FY2025 | ₹0Cr | ₹0Cr | 27.1% | 0.07 | 3.25 | 5.8% |
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.