DuPont Decomposition
Why does SUTLEJTEX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-7.6% = -2.6% × 1.28 × 2.29
Latest: FY2025
Profitability
Net Margin
-2.6%
4.9% →-2.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.28x
1.27x →1.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.29x
2.20x →2.29x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.3 pp over 4 years. Driven by net margin declining (4.9% → -2.6%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.9% | 1.27 | 2.20 | 13.7% |
| FY2023 | ₹0Cr | ₹0Cr | 1.2% | 1.24 | 2.19 | 3.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -5.1% | 1.26 | 2.19 | -14.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.6% | 1.28 | 2.29 | -7.6% |
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.