DuPont Decomposition
Why does MANYAVAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.8% = 28.1% × 0.50 × 1.54
Latest: FY2025
Profitability
Net Margin
28.1%
31.7% →28.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.63x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
1.55x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.9 pp over 3 years. Driven by net margin declining (31.7% → 28.1%), asset turnover declining (0.63x → 0.50x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 31.7% | 0.63 | 1.55 | 30.6% |
| FY2024 | ₹0Cr | ₹0Cr | 30.3% | 0.55 | 1.57 | 25.9% |
| FY2025 | ₹0Cr | ₹0Cr | 28.1% | 0.50 | 1.54 | 21.8% |
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.