DuPont Decomposition
Why does MANAPPURAM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.8% = 19.1% × 0.13 × 3.95
Latest: FY2025
Profitability
Net Margin
19.1%
23.1% →19.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.13x
0.04x →0.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.95x
4.09x →3.95x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.6 pp over 3 years. Driven by net margin declining (23.1% → 19.1%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 23.1% | 0.04 | 4.09 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 23.9% | 0.05 | 4.04 | 4.9% |
| FY2025 | ₹0Cr | ₹0Cr | 19.1% | 0.13 | 3.95 | 9.8% |
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.