DuPont Decomposition
Why does SVPGLOB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-81.5% = -25.5% × 0.24 × 13.19
Latest: FY2023
Profitability
Net Margin
-25.5%
4.1% →-25.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.24x
0.46x →0.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
13.19x
6.49x →13.19x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 93.7 pp over 2 years. Driven by net margin declining (4.1% → -25.5%), asset turnover declining (0.46x → 0.24x), leverage rising (6.49x → 13.19x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.1% | 0.46 | 6.49 | 12.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -25.5% | 0.24 | 13.19 | -81.5% |
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.