DuPont Decomposition
Why does STEELCITY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.2% = 26.3% × 0.31 × 1.65
Latest: FY2025
Profitability
Net Margin
26.3%
21.7% →26.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.31x
0.35x →0.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.65x
1.73x →1.65x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~13%. Driven by net margin improving (21.7% → 26.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 21.7% | 0.35 | 1.73 | 13.2% |
| FY2023 | ₹0Cr | ₹0Cr | 20.5% | 0.30 | 1.64 | 10.1% |
| FY2024 | ₹0Cr | ₹0Cr | 20.1% | 0.28 | 1.77 | 10.0% |
| FY2025 | ₹0Cr | ₹0Cr | 26.3% | 0.31 | 1.65 | 13.2% |
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.