DuPont Decomposition
Why does SRTL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.8% = 3.2% × 1.30 × 2.62
Latest: FY2025
Profitability
Net Margin
3.2%
1.7% →3.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.30x
1.64x →1.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.62x
2.43x →2.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.1 pp over 4 years. Driven by net margin improving (1.7% → 3.2%), asset turnover declining (1.64x → 1.30x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.7% | 1.64 | 2.43 | 6.8% |
| FY2023 | ₹0Cr | ₹0Cr | 1.0% | 1.55 | 2.22 | 3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 2.9% | 1.49 | 2.31 | 9.8% |
| FY2025 | ₹0Cr | ₹0Cr | 3.2% | 1.30 | 2.62 | 10.8% |
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.