DuPont Decomposition
Why does SPIC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.4% = 7.2% × 1.18 × 1.82
Latest: FY2026
Profitability
Net Margin
7.2%
44.3% →7.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.18x
0.22x →1.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
2.44x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.1 pp over 5 years. Driven by net margin declining (44.3% → 7.2%), asset turnover improving (0.22x → 1.18x), leverage falling (2.44x → 1.82x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 44.3% | 0.22 | 2.44 | 23.5% |
| FY2023 | ₹0Cr | ₹0Cr | 57.5% | 0.24 | 2.23 | 30.5% |
| FY2024 | ₹0Cr | ₹0Cr | 27.3% | 0.24 | 1.64 | 10.5% |
| FY2025 | ₹0Cr | ₹0Cr | 5.1% | 1.34 | 1.91 | 13.0% |
| FY2026 | ₹0Cr | ₹0Cr | 7.2% | 1.18 | 1.82 | 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.