DuPont Decomposition
Why does TECHNOE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.3% = 18.9% × 0.44 × 1.35
Latest: FY2025
Profitability
Net Margin
18.9%
22.6% →18.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
0.30x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.35x
1.43x →1.35x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.6 pp over 3 years. Driven by net margin declining (22.6% → 18.9%), asset turnover improving (0.30x → 0.44x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 22.6% | 0.30 | 1.43 | 9.7% |
| FY2024 | ₹0Cr | ₹0Cr | 17.9% | 0.53 | 1.31 | 12.4% |
| FY2025 | ₹0Cr | ₹0Cr | 18.9% | 0.44 | 1.35 | 11.3% |
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.