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
9.7% = 14.2% × 0.59 × 1.15
Latest: FY2025
Profitability
Net Margin
14.2%
16.3% →14.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.47x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
1.23x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~10%. Driven by net margin declining (16.3% → 14.2%), asset turnover improving (0.47x → 0.59x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 16.3% | 0.47 | 1.23 | 9.5% |
| FY2024 | ₹0Cr | ₹0Cr | 11.8% | 0.18 | 1.14 | 2.4% |
| FY2025 | ₹0Cr | ₹0Cr | 14.2% | 0.59 | 1.15 | 9.7% |
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.