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
11.4% = 14.6% × 0.55 × 1.43
Latest: FY2026
Profitability
Net Margin
14.6%
26.7% →14.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.55x
0.39x →0.55x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
1.37x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.0 pp over 5 years. Driven by net margin declining (26.7% → 14.6%), asset turnover improving (0.39x → 0.55x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 26.7% | 0.39 | 1.37 | 14.4% |
| 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 | 18.6% | 0.45 | 1.35 | 11.3% |
| FY2026 | ₹0Cr | ₹0Cr | 14.6% | 0.55 | 1.43 | 11.4% |
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.