DuPont Decomposition
Why does TITAGARH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 7.3% × 1.01 × 1.52
Latest: FY2025
Profitability
Net Margin
7.3%
-0.0% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.01x
0.54x →1.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.52x
3.18x →1.52x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.2 pp over 4 years. Driven by net margin improving (-0.0% → 7.3%), asset turnover improving (0.54x → 1.01x), leverage falling (3.18x → 1.52x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -0.0% | 0.54 | 3.18 | -0.0% |
| FY2023 | ₹0Cr | ₹0Cr | 4.7% | 1.36 | 2.10 | 13.5% |
| FY2024 | ₹0Cr | ₹0Cr | 7.5% | 1.18 | 1.45 | 12.9% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 1.01 | 1.52 | 11.1% |
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.