DuPont Decomposition
Why does MBLINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.9% = 132.1% × 0.04 × 3.16
Latest: FY2025
Profitability
Net Margin
132.1%
-11.6% →132.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.01x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.16x
3.76x →3.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 18.5 pp over 3 years. Driven by net margin improving (-11.6% → 132.1%), leverage falling (3.76x → 3.16x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -11.6% | 0.01 | 3.76 | -0.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -47.0% | 0.01 | 3.87 | -1.5% |
| FY2025 | ₹0Cr | ₹0Cr | 132.1% | 0.04 | 3.16 | 17.9% |
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.