DuPont Decomposition
Why does SUNCLAY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.5% = 12.5% × 0.62 × 2.53
Latest: FY2026
Profitability
Net Margin
12.5%
1.5% →12.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
0.71x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.53x
4.17x →2.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.0 pp over 5 years. Driven by net margin improving (1.5% → 12.5%), leverage falling (4.17x → 2.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 0.71 | 4.17 | 4.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -5.3% | 0.84 | 3.12 | -13.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -8.6% | 0.52 | 4.46 | -20.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.5% | 0.73 | 3.19 | -1.1% |
| FY2026 | ₹0Cr | ₹0Cr | 12.5% | 0.62 | 2.53 | 19.5% |
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.