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
17.4% = 6.3% × 0.84 × 3.31
Latest: FY2025
Profitability
Net Margin
6.3%
2.8% →6.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.80x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.31x
4.29x →3.31x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.6 pp over 4 years. Driven by net margin improving (2.8% → 6.3%), leverage falling (4.29x → 3.31x).
Historical Decomposition
Last 4 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 | 17.4% |
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.