DuPont Decomposition
Why does SJVN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.5% = 14.2% × 0.09 × 3.64
Latest: FY2026
Profitability
Net Margin
14.2%
41.1% →14.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.09x
0.10x →0.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.64x
1.77x →3.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.0 pp over 5 years. Driven by net margin declining (41.1% → 14.2%), leverage rising (1.77x → 3.64x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 41.1% | 0.10 | 1.77 | 7.5% |
| FY2023 | ₹0Cr | ₹0Cr | 48.2% | 0.09 | 2.33 | 9.8% |
| FY2024 | ₹0Cr | ₹0Cr | 35.5% | 0.07 | 2.79 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 26.7% | 0.07 | 3.25 | 5.8% |
| FY2026 | ₹0Cr | ₹0Cr | 14.2% | 0.09 | 3.64 | 4.5% |
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.