DuPont Decomposition
Why does MRPL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.6% = 2.2% × 1.99 × 3.13
Latest: FY2026
Profitability
Net Margin
2.2%
3.4% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.99x
2.15x →1.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.13x
5.56x →3.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 27.5 pp over 5 years. Driven by net margin declining (3.4% → 2.2%), asset turnover declining (2.15x → 1.99x), leverage falling (5.56x → 3.13x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.4% | 2.15 | 5.56 | 41.0% |
| FY2023 | ₹0Cr | ₹0Cr | 2.4% | 3.10 | 3.57 | 26.9% |
| FY2024 | ₹0Cr | ₹0Cr | 4.0% | 2.55 | 2.67 | 27.1% |
| FY2025 | ₹0Cr | ₹0Cr | 0.1% | 2.75 | 2.66 | 0.4% |
| FY2026 | ₹0Cr | ₹0Cr | 2.2% | 1.99 | 3.13 | 13.6% |
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.