DuPont Decomposition
Why does TMPV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
73.5% = 24.7% × 0.87 × 3.41
Latest: FY2026
Profitability
Net Margin
24.7%
-4.2% →24.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.87x
0.83x →0.87x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.41x
7.42x →3.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 99.2 pp over 5 years. Driven by net margin improving (-4.2% → 24.7%), leverage falling (7.42x → 3.41x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -4.2% | 0.83 | 7.42 | -25.7% |
| FY2023 | ₹0Cr | ₹0Cr | 0.7% | 1.02 | 7.42 | 5.3% |
| FY2024 | ₹0Cr | ₹0Cr | 7.3% | 1.16 | 4.36 | 37.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.7% | 0.96 | 3.26 | 24.0% |
| FY2026 | ₹0Cr | ₹0Cr | 24.7% | 0.87 | 3.41 | 73.5% |
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.