DuPont Decomposition
Why does MANGLMCEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.2% = 7.3% × 0.73 × 2.48
Latest: FY2026
Profitability
Net Margin
7.3%
5.0% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.81x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.48x
2.60x →2.48x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.7 pp over 5 years. Driven by net margin improving (5.0% → 7.3%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.0% | 0.81 | 2.60 | 10.5% |
| FY2023 | ₹0Cr | ₹0Cr | 1.0% | 0.90 | 2.63 | 2.3% |
| FY2024 | ₹0Cr | ₹0Cr | 3.5% | 0.83 | 2.55 | 7.4% |
| FY2025 | ₹0Cr | ₹0Cr | 2.7% | 0.78 | 2.54 | 5.3% |
| FY2026 | ₹0Cr | ₹0Cr | 7.3% | 0.73 | 2.48 | 13.2% |
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.