DuPont Decomposition
Why does MANUGRAPH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-50.1% = -47.0% × 0.40 × 2.67
Latest: FY2025
Profitability
Net Margin
-47.0%
-31.5% →-47.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.40x
0.26x →0.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.67x
1.55x →2.67x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 37.4 pp over 4 years. Driven by net margin declining (-31.5% → -47.0%), asset turnover improving (0.26x → 0.40x), leverage rising (1.55x → 2.67x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -31.5% | 0.26 | 1.55 | -12.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -14.6% | 0.45 | 1.73 | -11.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -31.1% | 0.42 | 1.90 | -24.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -47.0% | 0.40 | 2.67 | -50.1% |
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.