DuPont Decomposition
Why does TCPLPACK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.2% = 8.2% × 1.08 × 2.50
Latest: FY2025
Profitability
Net Margin
8.2%
6.3% →8.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.08x
0.31x →1.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.50x
2.76x →2.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 16.8 pp over 3 years. Driven by net margin improving (6.3% → 8.2%), asset turnover improving (0.31x → 1.08x), leverage falling (2.76x → 2.50x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.3% | 0.31 | 2.76 | 5.5% |
| FY2024 | ₹0Cr | ₹0Cr | 7.4% | 0.30 | 2.53 | 5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 8.2% | 1.08 | 2.50 | 22.2% |
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.