DuPont Decomposition
Why does TATATECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.9% = 13.1% × 0.77 × 1.86
Latest: FY2025
Profitability
Net Margin
13.1%
12.4% →13.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.84x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.86x
1.85x →1.86x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~19%.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.4% | 0.84 | 1.85 | 19.2% |
| FY2023 | ₹0Cr | ₹0Cr | 14.1% | 0.85 | 1.74 | 20.9% |
| FY2024 | ₹0Cr | ₹0Cr | 12.1% | 0.23 | 1.73 | 4.9% |
| FY2025 | ₹0Cr | ₹0Cr | 13.1% | 0.77 | 1.86 | 18.9% |
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.