DuPont Decomposition
Why does MICEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-5.8% = -6.6% × 0.54 × 1.64
Latest: FY2026
Profitability
Net Margin
-6.6%
6.6% →-6.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.54x
0.60x →0.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.20x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.6 pp over 5 years. Driven by net margin declining (6.6% → -6.6%), leverage rising (1.20x → 1.64x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.6% | 0.60 | 1.20 | 4.7% |
| FY2023 | ₹0Cr | ₹0Cr | 2.9% | 0.07 | 1.22 | 0.2% |
| FY2024 | ₹0Cr | ₹0Cr | 123.6% | 0.36 | 1.15 | 50.7% |
| FY2025 | ₹0Cr | ₹0Cr | 10.4% | 0.30 | 1.41 | 4.4% |
| FY2026 | ₹0Cr | ₹-0Cr | -6.6% | 0.54 | 1.64 | -5.8% |
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.