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
-1.1% = -0.5% × 0.72 × 3.19
Latest: FY2025
Profitability
Net Margin
-0.5%
1.5% →-0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.71x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.19x
2.74x →3.19x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.1 pp over 4 years. Driven by net margin declining (1.5% → -0.5%), leverage rising (2.74x → 3.19x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 0.71 | 2.74 | 3.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -5.3% | 0.84 | 3.12 | -13.9% |
| FY2024 | ₹0Cr | ₹0Cr | 1.5% | 0.59 | 2.97 | 2.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.5% | 0.72 | 3.19 | -1.1% |
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.