DuPont Decomposition
Why does TDPOWERSYS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.3% = 13.9% × 0.92 × 1.59
Latest: FY2025
Profitability
Net Margin
13.9%
13.4% →13.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
0.26x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
1.46x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.3 pp over 3 years. Driven by asset turnover improving (0.26x → 0.92x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 13.4% | 0.26 | 1.46 | 5.0% |
| FY2024 | ₹0Cr | ₹0Cr | 11.0% | 0.25 | 1.47 | 4.1% |
| FY2025 | ₹0Cr | ₹0Cr | 13.9% | 0.92 | 1.59 | 20.3% |
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.