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
9.9% = 6.6% × 1.21 × 1.25
Latest: FY2026
Profitability
Net Margin
6.6%
11.9% →6.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
1.65x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.23x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.1 pp over 5 years. Driven by net margin declining (11.9% → 6.6%), asset turnover declining (1.65x → 1.21x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.9% | 1.65 | 1.23 | 24.0% |
| FY2023 | ₹0Cr | ₹0Cr | 11.2% | 1.69 | 1.23 | 23.4% |
| FY2024 | ₹0Cr | ₹0Cr | 10.5% | 1.47 | 1.21 | 18.7% |
| FY2025 | ₹0Cr | ₹0Cr | 7.1% | 1.32 | 1.20 | 11.2% |
| FY2026 | ₹0Cr | ₹0Cr | 6.6% | 1.21 | 1.25 | 9.9% |
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.