DuPont Decomposition
Why does MPHASIS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.7% = 12.0% × 0.95 × 1.55
Latest: FY2025
Profitability
Net Margin
12.0%
12.1% →12.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
0.29x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
1.46x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.6 pp over 3 years. Driven by asset turnover improving (0.29x → 0.95x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.1% | 0.29 | 1.46 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 11.5% | 0.24 | 1.61 | 4.5% |
| FY2025 | ₹0Cr | ₹0Cr | 12.0% | 0.95 | 1.55 | 17.7% |
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.