DuPont Decomposition
Why does MANAKSTEEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.3% = 3.5% × 1.91 × 1.82
Latest: FY2026
Profitability
Net Margin
3.5%
5.8% →3.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.91x
1.74x →1.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
1.32x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.0 pp over 5 years. Driven by net margin declining (5.8% → 3.5%), asset turnover improving (1.74x → 1.91x), leverage rising (1.32x → 1.82x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.8% | 1.74 | 1.32 | 13.3% |
| FY2023 | ₹0Cr | ₹0Cr | 1.6% | 1.77 | 1.45 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.31 | 1.73 | 9.4% |
| FY2025 | ₹0Cr | ₹0Cr | 1.5% | 1.18 | 1.85 | 3.4% |
| FY2026 | ₹0Cr | ₹0Cr | 3.5% | 1.91 | 1.82 | 12.3% |
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.