DuPont Decomposition
Why does MANINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.3% = 25.7% × 0.50 × 1.18
Latest: FY2025
Profitability
Net Margin
25.7%
13.4% →25.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.38x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.63x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.9 pp over 3 years. Driven by net margin improving (13.4% → 25.7%), asset turnover improving (0.38x → 0.50x), leverage falling (1.63x → 1.18x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 13.4% | 0.38 | 1.63 | 8.4% |
| FY2024 | ₹0Cr | ₹0Cr | 21.8% | 0.14 | 1.47 | 4.4% |
| FY2025 | ₹0Cr | ₹0Cr | 25.7% | 0.50 | 1.18 | 15.3% |
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.