DuPont Decomposition
Why does MINDACORP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.6% = 5.1% × 1.02 × 2.22
Latest: FY2025
Profitability
Net Margin
5.1%
6.6% →5.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.02x
1.33x →1.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.22x
2.03x →2.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.3 pp over 3 years. Driven by net margin declining (6.6% → 5.1%), asset turnover declining (1.33x → 1.02x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.6% | 1.33 | 2.03 | 17.9% |
| FY2024 | ₹0Cr | ₹0Cr | 4.9% | 1.35 | 1.74 | 11.5% |
| FY2025 | ₹0Cr | ₹0Cr | 5.1% | 1.02 | 2.22 | 11.6% |
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.