DuPont Decomposition
Why does SYSTMTXC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.3% = 36.6% × 0.29 × 1.43
Latest: FY2025
Profitability
Net Margin
36.6%
21.6% →36.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.36x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
2.37x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.2 pp over 4 years. Driven by net margin improving (21.6% → 36.6%), leverage falling (2.37x → 1.43x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 21.6% | 0.36 | 2.37 | 18.4% |
| FY2023 | ₹0Cr | ₹0Cr | 7.5% | 0.37 | 1.83 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 47.6% | 0.36 | 2.02 | 35.0% |
| FY2025 | ₹0Cr | ₹0Cr | 36.6% | 0.29 | 1.43 | 15.3% |
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.