DuPont Decomposition
Why does SRD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.0% = 2.9% × 2.97 × 1.28
Latest: FY2026
Profitability
Net Margin
2.9%
8.9% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.97x
2.88x →2.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.37x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 24.3 pp over 5 years. Driven by net margin declining (8.9% → 2.9%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.9% | 2.88 | 1.37 | 35.3% |
| FY2023 | ₹0Cr | ₹0Cr | 4.9% | 2.94 | 1.19 | 17.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.3% | 2.72 | 1.07 | 6.6% |
| FY2025 | ₹0Cr | ₹0Cr | 2.8% | 3.12 | 1.18 | 10.4% |
| FY2026 | ₹0Cr | ₹0Cr | 2.9% | 2.97 | 1.28 | 11.0% |
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.