DuPont Decomposition
Why does TICL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.4% = 66.0% × 0.12 × 2.38
Latest: FY2025
Profitability
Net Margin
66.0%
-2.3% →66.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.12x
0.15x →0.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.38x
2.63x →2.38x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 19.3 pp over 4 years. Driven by net margin improving (-2.3% → 66.0%), leverage falling (2.63x → 2.38x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2.3% | 0.15 | 2.63 | -0.9% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.6% | 0.13 | 2.88 | -0.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -67.2% | 0.03 | 2.63 | -6.2% |
| FY2025 | ₹0Cr | ₹0Cr | 66.0% | 0.12 | 2.38 | 18.4% |
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.