DuPont Decomposition
Why does MOHITIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.8% = -0.6% × 0.93 × 1.62
Latest: FY2026
Profitability
Net Margin
-0.6%
0.1% →-0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
0.82x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.44x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-1%. Driven by asset turnover improving (0.82x → 0.93x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.1% | 0.82 | 1.44 | 0.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.9% | 0.68 | 1.34 | -0.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.5% | 0.39 | 1.21 | -0.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.2% | 0.46 | 1.37 | -1.4% |
| FY2026 | ₹0Cr | ₹-0Cr | -0.6% | 0.93 | 1.62 | -0.8% |
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.