DuPont Decomposition
Why does MOIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.5% = 24.2% × 0.49 × 1.22
Latest: FY2025
Profitability
Net Margin
24.2%
26.3% →24.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.56x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.20x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.1 pp over 4 years. Driven by net margin declining (26.2% → 24.2%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 26.3% | 0.56 | 1.20 | 17.6% |
| FY2023 | ₹0Cr | ₹0Cr | 18.8% | 0.50 | 1.20 | 11.2% |
| FY2024 | ₹0Cr | ₹0Cr | 20.3% | 0.50 | 1.18 | 12.0% |
| FY2025 | ₹0Cr | ₹0Cr | 24.2% | 0.49 | 1.22 | 14.5% |
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.