DuPont Decomposition
Why does SUNTECK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.7% = 18.2% × 0.11 × 2.75
Latest: FY2026
Profitability
Net Margin
18.2%
0.4% →18.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.05x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.75x
2.60x →2.75x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.6 pp over 4 years. Driven by net margin improving (0.4% → 18.2%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.4% | 0.05 | 2.60 | 0.1% |
| FY2024 | ₹0Cr | ₹0Cr | 12.7% | 0.07 | 2.54 | 2.3% |
| FY2025 | ₹0Cr | ₹0Cr | 17.6% | 0.10 | 2.55 | 4.6% |
| FY2026 | ₹0Cr | ₹0Cr | 18.2% | 0.11 | 2.75 | 5.7% |
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.