DuPont Decomposition
Why does MAPMYINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.6% = 31.8% × 0.49 × 1.19
Latest: FY2025
Profitability
Net Margin
31.8%
39.1% →31.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.11x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.24x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.4 pp over 3 years. Driven by net margin declining (39.1% → 31.8%), asset turnover improving (0.11x → 0.49x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 39.1% | 0.11 | 1.24 | 5.2% |
| FY2024 | ₹0Cr | ₹0Cr | 35.8% | 0.13 | 1.20 | 5.8% |
| FY2025 | ₹0Cr | ₹0Cr | 31.8% | 0.49 | 1.19 | 18.6% |
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.