DuPont Decomposition
Why does SYRMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 4.6% × 0.88 × 2.30
Latest: FY2025
Profitability
Net Margin
4.6%
5.5% →4.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.88x
0.88x →0.88x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.30x
1.98x →2.30x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~9%. Driven by leverage rising (1.98x → 2.30x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.5% | 0.88 | 1.98 | 9.5% |
| FY2023 | ₹0Cr | ₹0Cr | 5.9% | 0.79 | 1.65 | 7.8% |
| FY2024 | ₹0Cr | ₹0Cr | 3.4% | 0.85 | 2.29 | 6.7% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 0.88 | 2.30 | 9.3% |
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.