DuPont Decomposition
Why does TARIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.8% = 10.8% × 0.91 × 1.72
Latest: FY2025
Profitability
Net Margin
10.8%
2.2% →10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
0.37x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
3.02x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.4 pp over 3 years. Driven by net margin improving (2.2% → 10.8%), asset turnover improving (0.37x → 0.91x), leverage falling (3.02x → 1.72x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.2% | 0.37 | 3.02 | 2.4% |
| FY2024 | ₹0Cr | ₹0Cr | 8.1% | 0.44 | 2.11 | 7.5% |
| FY2025 | ₹0Cr | ₹0Cr | 10.8% | 0.91 | 1.72 | 16.8% |
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.