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
4.6% = 17.6% × 0.10 × 2.55
Latest: FY2025
Profitability
Net Margin
17.6%
-57.2% →17.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.01x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.55x
2.60x →2.55x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.6 pp over 3 years. Driven by net margin improving (-57.2% → 17.6%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -57.2% | 0.01 | 2.60 | -1.0% |
| FY2024 | ₹0Cr | ₹0Cr | 23.7% | 0.05 | 2.54 | 3.2% |
| FY2025 | ₹0Cr | ₹0Cr | 17.6% | 0.10 | 2.55 | 4.6% |
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.