DuPont Decomposition
Why does TPLPLASTEH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.0% = 6.8% × 1.42 × 1.66
Latest: FY2025
Profitability
Net Margin
6.8%
5.3% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.42x
0.32x →1.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.66x
1.94x →1.66x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.7 pp over 3 years. Driven by net margin improving (5.3% → 6.8%), asset turnover improving (0.32x → 1.42x), leverage falling (1.94x → 1.66x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.3% | 0.32 | 1.94 | 3.3% |
| FY2024 | ₹0Cr | ₹0Cr | 7.3% | 0.36 | 1.78 | 4.7% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 1.42 | 1.66 | 16.0% |
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.