DuPont Decomposition
Why does MAITHANALL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.8% = 35.5% × 0.37 × 1.29
Latest: FY2025
Profitability
Net Margin
35.5%
18.3% →35.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.37x
0.17x →0.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.12x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.3 pp over 3 years. Driven by net margin improving (18.3% → 35.5%), asset turnover improving (0.17x → 0.37x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 18.3% | 0.17 | 1.12 | 3.5% |
| FY2024 | ₹0Cr | ₹0Cr | 32.8% | 0.12 | 1.10 | 4.5% |
| FY2025 | ₹0Cr | ₹0Cr | 35.5% | 0.37 | 1.29 | 16.8% |
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.