DuPont Decomposition
Why does MODINATUR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
29.2% = 7.0% × 1.77 × 2.36
Latest: FY2026
Profitability
Net Margin
7.0%
2.0% →7.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.77x
2.87x →1.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.36x
2.14x →2.36x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.1 pp over 5 years. Driven by net margin improving (2.0% → 7.0%), asset turnover declining (2.87x → 1.77x), leverage rising (2.14x → 2.36x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.0% | 2.87 | 2.14 | 12.1% |
| FY2023 | ₹0Cr | ₹0Cr | 0.3% | 1.59 | 3.21 | 1.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.3% | 1.29 | 3.38 | -1.5% |
| FY2025 | ₹0Cr | ₹0Cr | 4.7% | 2.01 | 2.71 | 25.5% |
| FY2026 | ₹0Cr | ₹0Cr | 7.0% | 1.77 | 2.36 | 29.2% |
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.