DuPont Decomposition
Why does TIINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.8% = 3.6% × 1.18 × 2.08
Latest: FY2025
Profitability
Net Margin
3.6%
6.6% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.18x
1.41x →1.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.08x
2.60x →2.08x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.4 pp over 3 years. Driven by net margin declining (6.6% → 3.6%), asset turnover declining (1.41x → 1.18x), leverage falling (2.60x → 2.08x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.6% | 1.41 | 2.60 | 24.2% |
| FY2024 | ₹0Cr | ₹0Cr | 7.4% | 1.24 | 2.58 | 23.6% |
| FY2025 | ₹0Cr | ₹0Cr | 3.6% | 1.18 | 2.08 | 8.8% |
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.