DuPont Decomposition
Why does TREJHARA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.9% = 6.1% × 0.36 × 1.33
Latest: FY2026
Profitability
Net Margin
6.1%
18.8% →6.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.10x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.33x
1.28x →1.33x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~3%. Driven by net margin declining (18.8% → 6.1%), asset turnover improving (0.10x → 0.36x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.8% | 0.10 | 1.28 | 2.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -992.0% | 0.06 | 1.75 | -112.2% |
| FY2024 | ₹0Cr | ₹0Cr | 30.5% | 0.27 | 1.12 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 0.44 | 1.12 | 1.8% |
| FY2026 | ₹0Cr | ₹0Cr | 6.1% | 0.36 | 1.33 | 2.9% |
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.