DuPont Decomposition

Why does SOUTHBANK earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

12.9% = 24.6% × 0.04 × 12.33

Latest: FY2025

Profitability

Net Margin

24.6%

24.6% →24.6%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.04x

0.04x →0.04x

Revenue per ₹ of assets

Leverage

Equity Multiplier

12.33x

12.33x →12.33x

Assets funded by equity vs debt

Historical Decomposition

Last 1 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY2025₹0Cr₹0Cr24.6%0.0412.3312.9%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.