DuPont Decomposition
Why does MGL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.1% = 10.2% × 0.92 × 1.40
Latest: FY2026
Profitability
Net Margin
10.2%
16.9% →10.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
0.68x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.45x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.5 pp over 5 years. Driven by net margin declining (16.9% → 10.2%), asset turnover improving (0.68x → 0.92x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.9% | 0.68 | 1.45 | 16.6% |
| FY2023 | ₹0Cr | ₹0Cr | 12.6% | 1.04 | 1.46 | 19.1% |
| FY2024 | ₹0Cr | ₹0Cr | 20.5% | 0.86 | 1.41 | 25.0% |
| FY2025 | ₹0Cr | ₹0Cr | 14.3% | 0.88 | 1.41 | 17.7% |
| FY2026 | ₹0Cr | ₹0Cr | 10.2% | 0.92 | 1.40 | 13.1% |
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.