DuPont Decomposition
Why does MAHEPC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.2% = 2.6% × 0.93 × 1.69
Latest: FY2025
Profitability
Net Margin
2.6%
3.9% →2.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
0.28x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.69x
1.55x →1.69x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.5 pp over 3 years. Driven by net margin declining (3.9% → 2.6%), asset turnover improving (0.28x → 0.93x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.9% | 0.28 | 1.55 | 1.7% |
| FY2024 | ₹0Cr | ₹0Cr | 2.1% | 0.28 | 1.56 | 0.9% |
| FY2025 | ₹0Cr | ₹0Cr | 2.6% | 0.93 | 1.69 | 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.