DuPont Decomposition
Why does SRHHYPOLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.8% = 14.2% × 0.59 × 1.16
Latest: FY2025
Profitability
Net Margin
14.2%
8.1% →14.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
1.60x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
1.38x →1.16x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.2 pp over 4 years. Driven by net margin improving (8.1% → 14.2%), asset turnover declining (1.60x → 0.59x), leverage falling (1.38x → 1.16x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.1% | 1.60 | 1.38 | 18.0% |
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 1.74 | 1.26 | 20.5% |
| FY2024 | ₹0Cr | ₹0Cr | 9.2% | 0.94 | 1.14 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 14.2% | 0.59 | 1.16 | 9.8% |
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.