DuPont Decomposition
Why does STARCEMENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.9% = 5.7% × 0.73 × 1.43
Latest: FY2025
Profitability
Net Margin
5.7%
9.6% →5.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.82x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
1.30x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.4 pp over 3 years. Driven by net margin declining (9.6% → 5.7%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.6% | 0.82 | 1.30 | 10.3% |
| FY2024 | ₹0Cr | ₹0Cr | 10.2% | 0.80 | 1.33 | 10.9% |
| FY2025 | ₹0Cr | ₹0Cr | 5.7% | 0.73 | 1.43 | 5.9% |
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.