DuPont Decomposition
Why does MOTILALOFS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.6% = 38.8% × 0.19 × 3.07
Latest: FY2025
Profitability
Net Margin
38.8%
35.7% →38.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.19x
0.22x →0.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.07x
2.98x →3.07x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~23%. Driven by net margin improving (35.7% → 38.8%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 35.7% | 0.22 | 2.98 | 23.1% |
| FY2023 | ₹0Cr | ₹0Cr | 24.4% | 0.17 | 3.68 | 14.9% |
| FY2024 | ₹0Cr | ₹0Cr | 47.2% | 0.16 | 3.65 | 28.0% |
| FY2025 | ₹0Cr | ₹0Cr | 38.8% | 0.19 | 3.07 | 22.6% |
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.