DuPont Decomposition
Why does 3MINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.8% = 10.7% × 1.47 × 1.63
Latest: FY2025
Profitability
Net Margin
10.7%
11.4% →10.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.47x
1.46x →1.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.63x
1.62x →1.63x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 3 years.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.4% | 1.46 | 1.62 | 26.9% |
| FY2024 | ₹0Cr | ₹0Cr | 13.9% | 1.29 | 1.51 | 27.2% |
| FY2025 | ₹0Cr | ₹0Cr | 10.7% | 1.47 | 1.63 | 25.8% |
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.