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
17.2% = 6.9% × 1.65 × 1.52
Latest: FY2026
Profitability
Net Margin
6.9%
5.8% →6.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.65x
1.10x →1.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.52x
2.01x →1.52x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.2 pp over 5 years. Driven by net margin improving (5.8% → 6.9%), asset turnover improving (1.10x → 1.65x), leverage falling (2.01x → 1.52x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.8% | 1.10 | 2.01 | 13.0% |
| FY2023 | ₹0Cr | ₹0Cr | 5.9% | 1.20 | 1.94 | 13.9% |
| FY2024 | ₹0Cr | ₹0Cr | 6.3% | 1.35 | 1.78 | 15.2% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 1.42 | 1.66 | 16.0% |
| FY2026 | ₹0Cr | ₹0Cr | 6.9% | 1.65 | 1.52 | 17.2% |
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.