DuPont Decomposition
Why does MANALIPETC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.7% = 3.3% × 0.64 × 1.28
Latest: FY2025
Profitability
Net Margin
3.3%
-0.1% →3.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.64x
0.26x →0.64x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.22x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.7 pp over 3 years. Driven by net margin improving (-0.1% → 3.3%), asset turnover improving (0.26x → 0.64x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -0.1% | 0.26 | 1.22 | -0.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.5% | 0.20 | 1.23 | 0.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3.3% | 0.64 | 1.28 | 2.7% |
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.