DuPont Decomposition
Why does MASTEK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.3% = 10.9% × 0.89 × 1.57
Latest: FY2025
Profitability
Net Margin
10.9%
42.2% →10.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
0.38x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.57x
1.12x →1.57x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.5 pp over 3 years. Driven by net margin declining (42.2% → 10.9%), asset turnover improving (0.38x → 0.89x), leverage rising (1.12x → 1.57x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 42.2% | 0.38 | 1.12 | 17.8% |
| FY2024 | ₹0Cr | ₹0Cr | 10.2% | 0.83 | 1.75 | 14.8% |
| FY2025 | ₹0Cr | ₹0Cr | 10.9% | 0.89 | 1.57 | 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.