DuPont Decomposition
Why does MMTC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.1% = 3220.4% × 0.00 × 2.04
Latest: FY2025
Profitability
Net Margin
3220.4%
44.3% →3220.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.00x
0.96x →0.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.04x
2.61x →2.04x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 105.6 pp over 3 years. Driven by net margin improving (44.3% → 3220.4%), asset turnover declining (0.96x → 0.00x), leverage falling (2.61x → 2.04x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 44.3% | 0.96 | 2.61 | 110.7% |
| FY2024 | ₹0Cr | ₹0Cr | 3746.2% | 0.00 | 2.14 | 12.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3220.4% | 0.00 | 2.04 | 5.1% |
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.