DuPont Decomposition
Why does TRANSPEK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.5% = 7.5% × 0.65 × 1.34
Latest: FY2025
Profitability
Net Margin
7.5%
10.9% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.78x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.58x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.0 pp over 4 years. Driven by net margin declining (10.9% → 7.5%), asset turnover declining (0.78x → 0.65x), leverage falling (1.58x → 1.34x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.9% | 0.78 | 1.58 | 13.5% |
| FY2023 | ₹0Cr | ₹0Cr | 10.1% | 0.93 | 1.51 | 14.2% |
| FY2024 | ₹0Cr | ₹0Cr | 6.7% | 0.60 | 1.43 | 5.7% |
| FY2025 | ₹0Cr | ₹0Cr | 7.5% | 0.65 | 1.34 | 6.5% |
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.