DuPont Decomposition
Why does TEXINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.5% = -45.4% × 0.01 × 1.20
Latest: FY2025
Profitability
Net Margin
-45.4%
2.4% →-45.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.01x →0.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.07x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-1%. Driven by net margin declining (2.4% → -45.4%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.4% | 0.01 | 1.07 | 0.0% |
| FY2024 | ₹0Cr | ₹0Cr | 73.3% | 0.00 | 1.07 | 0.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -45.4% | 0.01 | 1.20 | -0.5% |
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.