DuPont Decomposition
Why does MOLDTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.3% = 8.3% × 1.06 × 1.17
Latest: FY2025
Profitability
Net Margin
8.3%
13.5% →8.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
1.09x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.17x
1.25x →1.17x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.0 pp over 4 years. Driven by net margin declining (13.5% → 8.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.5% | 1.09 | 1.25 | 18.3% |
| FY2023 | ₹0Cr | ₹0Cr | 19.9% | 1.14 | 1.25 | 28.2% |
| FY2024 | ₹0Cr | ₹0Cr | 17.3% | 1.10 | 1.20 | 22.9% |
| FY2025 | ₹0Cr | ₹0Cr | 8.3% | 1.06 | 1.17 | 10.3% |
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.