DuPont Decomposition
Why does SPCENET earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.1% = 8.3% × 0.80 × 1.38
Latest: FY2026
Profitability
Net Margin
8.3%
1.7% →8.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.81x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.55x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.0 pp over 5 years. Driven by net margin improving (1.7% → 8.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.7% | 0.81 | 1.55 | 2.1% |
| FY2023 | ₹0Cr | ₹0Cr | 1.9% | 1.77 | 1.54 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.1% | 1.01 | 1.20 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 7.6% | 0.81 | 1.28 | 7.9% |
| FY2026 | ₹0Cr | ₹0Cr | 8.3% | 0.80 | 1.38 | 9.1% |
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.