DuPont Decomposition
Why does TTKPRESTIG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.0% = 4.1% × 1.07 × 1.35
Latest: FY2025
Profitability
Net Margin
4.1%
11.3% →4.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
1.12x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.35x
1.40x →1.35x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.6 pp over 4 years. Driven by net margin declining (11.3% → 4.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.3% | 1.12 | 1.40 | 17.6% |
| FY2023 | ₹0Cr | ₹0Cr | 9.2% | 1.06 | 1.33 | 13.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.6% | 0.97 | 1.31 | 10.9% |
| FY2025 | ₹0Cr | ₹0Cr | 4.1% | 1.07 | 1.35 | 6.0% |
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.