DuPont Decomposition
Why does TCIEXP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.2% = 7.1% × 1.32 × 1.20
Latest: FY2025
Profitability
Net Margin
7.1%
11.8% →7.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.32x
0.44x →1.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.23x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.8 pp over 3 years. Driven by net margin declining (11.8% → 7.1%), asset turnover improving (0.44x → 1.32x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.8% | 0.44 | 1.23 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 10.0% | 0.37 | 1.21 | 4.5% |
| FY2025 | ₹0Cr | ₹0Cr | 7.1% | 1.32 | 1.20 | 11.2% |
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.