DuPont Decomposition
Why does SURANAT&P earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.0% = 147.2% × 0.09 × 1.15
Latest: FY2025
Profitability
Net Margin
147.2%
26.9% →147.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.09x
0.19x →0.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
1.33x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.3 pp over 4 years. Driven by net margin improving (26.9% → 147.2%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 26.9% | 0.19 | 1.33 | 6.7% |
| FY2023 | ₹0Cr | ₹0Cr | 18.9% | 0.19 | 1.21 | 4.3% |
| FY2024 | ₹0Cr | ₹0Cr | 31.9% | 0.17 | 1.14 | 6.0% |
| FY2025 | ₹0Cr | ₹0Cr | 147.2% | 0.09 | 1.15 | 15.0% |
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.