DuPont Decomposition
Why does TSFINV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.3% = 451.0% × 0.02 × 1.04
Latest: FY2025
Profitability
Net Margin
451.0%
322.5% →451.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.02x
0.02x →0.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.04x
1.02x →1.04x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~7%. Driven by net margin improving (322.5% → 451.0%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 322.5% | 0.02 | 1.02 | 6.7% |
| FY2024 | ₹0Cr | ₹0Cr | 123.8% | 0.04 | 1.03 | 5.6% |
| FY2025 | ₹0Cr | ₹0Cr | 451.0% | 0.02 | 1.04 | 7.3% |
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.