DuPont Decomposition
Why does TEJASNET earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.6% = 5.3% × 0.81 × 2.72
Latest: FY2025
Profitability
Net Margin
5.3%
-3.8% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.81x
0.08x →0.81x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.72x
1.21x →2.72x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.0 pp over 3 years. Driven by net margin improving (-3.8% → 5.3%), asset turnover improving (0.08x → 0.81x), leverage rising (1.21x → 2.72x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -3.8% | 0.08 | 1.21 | -0.4% |
| FY2024 | ₹0Cr | ₹0Cr | 11.1% | 0.16 | 2.60 | 4.7% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 0.81 | 2.72 | 11.6% |
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.