DuPont Decomposition
Why does MINDTECK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.4% = 7.7% × 1.10 × 1.22
Latest: FY2026
Profitability
Net Margin
7.7%
11.2% →7.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.10x
1.30x →1.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.31x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.6 pp over 5 years. Driven by net margin declining (11.2% → 7.7%), asset turnover declining (1.30x → 1.10x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.2% | 1.30 | 1.31 | 19.0% |
| FY2023 | ₹0Cr | ₹0Cr | 6.2% | 1.39 | 1.27 | 10.9% |
| FY2024 | ₹0Cr | ₹0Cr | 7.1% | 1.40 | 1.25 | 12.4% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 1.32 | 1.24 | 11.0% |
| FY2026 | ₹0Cr | ₹0Cr | 7.7% | 1.10 | 1.22 | 10.4% |
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.