DuPont Decomposition
Why does TEXMOPIPES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.9% = 4.9% × 1.08 × 1.68
Latest: FY2025
Profitability
Net Margin
4.9%
2.6% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.08x
1.55x →1.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
1.50x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.9 pp over 4 years. Driven by net margin improving (2.6% → 4.9%), asset turnover declining (1.55x → 1.08x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.6% | 1.55 | 1.50 | 6.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -11.2% | 2.08 | 1.64 | -38.4% |
| FY2024 | ₹0Cr | ₹0Cr | 0.9% | 1.54 | 1.76 | 2.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.9% | 1.08 | 1.68 | 8.9% |
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.