DuPont Decomposition
Why does SURAJEST earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 18.6% × 0.31 × 1.93
Latest: FY2025
Profitability
Net Margin
18.6%
9.7% →18.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.31x
0.32x →0.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.93x
21.94x →1.93x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 55.9 pp over 4 years. Driven by net margin improving (9.7% → 18.6%), leverage falling (21.94x → 1.93x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.7% | 0.32 | 21.94 | 67.0% |
| FY2023 | ₹0Cr | ₹0Cr | 10.5% | 0.30 | 14.04 | 45.0% |
| FY2024 | ₹0Cr | ₹0Cr | 16.4% | 0.32 | 2.50 | 13.1% |
| FY2025 | ₹0Cr | ₹0Cr | 18.6% | 0.31 | 1.93 | 11.1% |
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.