DuPont Decomposition
Why does TITAN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
28.7% = 5.5% × 1.48 × 3.50
Latest: FY2025
Profitability
Net Margin
5.5%
8.0% →5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.48x
1.50x →1.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.50x
2.28x →3.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.3 pp over 3 years. Driven by net margin declining (8.0% → 5.5%), leverage rising (2.28x → 3.50x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.0% | 1.50 | 2.28 | 27.4% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 1.61 | 3.36 | 37.2% |
| FY2025 | ₹0Cr | ₹0Cr | 5.5% | 1.48 | 3.50 | 28.7% |
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.