DuPont Decomposition
Why does TRANSRAILL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.7% = 6.0% × 0.92 × 3.22
Latest: FY2026
Profitability
Net Margin
6.0%
2.8% →6.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
0.80x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.22x
4.29x →3.22x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.9 pp over 5 years. Driven by net margin improving (2.8% → 6.0%), asset turnover improving (0.80x → 0.92x), leverage falling (4.29x → 3.22x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.8% | 0.80 | 4.29 | 9.8% |
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 0.90 | 4.47 | 13.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.8% | 0.87 | 4.06 | 20.5% |
| FY2025 | ₹0Cr | ₹0Cr | 6.3% | 0.84 | 3.31 | 17.5% |
| FY2026 | ₹0Cr | ₹0Cr | 6.0% | 0.92 | 3.22 | 17.7% |
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.