DuPont Decomposition
Why does SURYAROSNI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.1% = 4.7% × 2.28 × 1.31
Latest: FY2025
Profitability
Net Margin
4.7%
7.2% →4.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.28x
0.70x →2.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.64x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.7 pp over 3 years. Driven by net margin declining (7.2% → 4.7%), asset turnover improving (0.70x → 2.28x), leverage falling (1.64x → 1.31x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.2% | 0.70 | 1.64 | 8.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.0% | 0.71 | 1.35 | 4.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.7% | 2.28 | 1.31 | 14.1% |
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.