DuPont Decomposition
Why does TREL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.2% = 63.7% × 0.06 × 1.07
Latest: FY2025
Profitability
Net Margin
63.7%
20.3% →63.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.06x
0.09x →0.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.07x
1.48x →1.07x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.4 pp over 3 years. Driven by net margin improving (20.3% → 63.7%), leverage falling (1.48x → 1.07x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 20.3% | 0.09 | 1.48 | 2.9% |
| FY2024 | ₹0Cr | ₹0Cr | 258.6% | 0.07 | 1.10 | 20.6% |
| FY2025 | ₹0Cr | ₹0Cr | 63.7% | 0.06 | 1.07 | 4.2% |
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.