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Trident Techlabs (NSE:TECHLABS) ROE % : 28.32% (As of Mar. 2024)


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What is Trident Techlabs ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Trident Techlabs's annualized net income for the quarter that ended in Mar. 2024 was ₹93.7 Mil. Trident Techlabs's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was ₹330.8 Mil. Therefore, Trident Techlabs's annualized ROE % for the quarter that ended in Mar. 2024 was 28.32%.

The historical rank and industry rank for Trident Techlabs's ROE % or its related term are showing as below:

NSE:TECHLABS' s ROE % Range Over the Past 10 Years
Min: 1.27   Med: 16.39   Max: 28.32
Current: 28.32

During the past 4 years, Trident Techlabs's highest ROE % was 28.32%. The lowest was 1.27%. And the median was 16.39%.

NSE:TECHLABS's ROE % is ranked better than
89.45% of 2625 companies
in the Software industry
Industry Median: 4.4 vs NSE:TECHLABS: 28.32

Trident Techlabs ROE % Historical Data

The historical data trend for Trident Techlabs's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Trident Techlabs ROE % Chart

Trident Techlabs Annual Data
Trend Mar21 Mar22 Mar23 Mar24
ROE %
1.27 4.85 27.93 28.32

Trident Techlabs Semi-Annual Data
Mar21 Mar22 Mar23 Mar24
ROE % 1.27 4.85 27.93 28.32

Competitive Comparison of Trident Techlabs's ROE %

For the Software - Application subindustry, Trident Techlabs's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Trident Techlabs's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, Trident Techlabs's ROE % distribution charts can be found below:

* The bar in red indicates where Trident Techlabs's ROE % falls into.



Trident Techlabs ROE % Calculation

Trident Techlabs's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=93.675/( (195.883+465.659)/ 2 )
=93.675/330.771
=28.32 %

Trident Techlabs's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Mar. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=93.675/( (195.883+465.659)/ 2 )
=93.675/330.771
=28.32 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is one times the annual (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Trident Techlabs  (NSE:TECHLABS) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=93.675/330.771
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(93.675 / 726.206)*(726.206 / 744.6235)*(744.6235 / 330.771)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.9 %*0.9753*2.2512
=ROA %*Equity Multiplier
=12.58 %*2.2512
=28.32 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=93.675/330.771
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (93.675 / 126.44) * (126.44 / 162.016) * (162.016 / 726.206) * (726.206 / 744.6235) * (744.6235 / 330.771)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7409 * 0.7804 * 22.31 % * 0.9753 * 2.2512
=28.32 %

Note: The net income data used here is one times the annual (Mar. 2024) net income data. The Revenue data used here is one times the annual (Mar. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Trident Techlabs ROE % Related Terms

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Trident Techlabs Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Rani Jhansi Road, 1/18-20, 2nd floor, White House, New Delhi, IND, 110055
Trident Techlabs Ltd offers custom-built technology solutions to corporates in the aerospace, defense, automotive, telecom, semiconductor and power distribution sectors. It has two business verticals i.e. Engineering Solutions and Power System Solutions. Engineering Solutions portfolio consists of system-level electronics design, chip-level electronics design, embedded design, PCB designing, electromagnetic simulations and other products and services. Power Solutions portfolio of products and related services helps power distribution utilities that face new challenges due to the ever-changing nature of the industry and the increasing pressure on network reliability. The company operates in two segments; trading business, and consultancy business which generates the majority of the revenue.

Trident Techlabs Headlines

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