DuPont Decomposition
Why does SRGHFL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.2% = 17.2% × 0.16 × 3.29
Latest: FY2025
Profitability
Net Margin
17.2%
27.8% →17.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.16x
0.18x →0.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.29x
3.68x →3.29x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.6 pp over 4 years. Driven by net margin declining (27.8% → 17.2%), leverage falling (3.68x → 3.29x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 27.8% | 0.18 | 3.68 | 17.9% |
| FY2023 | ₹0Cr | ₹0Cr | 20.4% | 0.16 | 3.81 | 12.8% |
| FY2024 | ₹0Cr | ₹0Cr | 16.8% | 0.05 | 4.20 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 17.2% | 0.16 | 3.29 | 9.2% |
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.