DuPont Decomposition
Why does MHLXMIRU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.4% = 18.4% × 0.93 × 1.43
Latest: FY2025
Profitability
Net Margin
18.4%
3.8% →18.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
1.01x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
2.44x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.2 pp over 4 years. Driven by net margin improving (3.8% → 18.4%), leverage falling (2.44x → 1.43x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.8% | 1.01 | 2.44 | 9.3% |
| FY2023 | ₹0Cr | ₹0Cr | 15.8% | 0.96 | 1.73 | 26.1% |
| FY2024 | ₹0Cr | ₹0Cr | 14.5% | 0.93 | 1.55 | 20.9% |
| FY2025 | ₹0Cr | ₹0Cr | 18.4% | 0.93 | 1.43 | 24.4% |
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.