DuPont Decomposition
Why does SPLPETRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.5% = 6.5% × 1.74 × 1.55
Latest: FY2025
Profitability
Net Margin
6.5%
13.2% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.74x
2.20x →1.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
1.50x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 26.3 pp over 4 years. Driven by net margin declining (13.2% → 6.5%), asset turnover declining (2.20x → 1.74x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.2% | 2.20 | 1.50 | 43.8% |
| FY2023 | ₹0Cr | ₹0Cr | 11.5% | 0.51 | 1.48 | 8.7% |
| FY2024 | ₹0Cr | ₹0Cr | 8.4% | 0.51 | 1.52 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 6.5% | 1.74 | 1.55 | 17.5% |
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.