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
0.4% = 0.1% × 2.75 × 2.66
Latest: FY2025
Profitability
Net Margin
0.1%
6.5% →0.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.75x
0.84x →2.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.66x
3.56x →2.66x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 19.0 pp over 3 years. Driven by net margin declining (6.5% → 0.1%), asset turnover improving (0.84x → 2.75x), leverage falling (3.56x → 2.66x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.5% | 0.84 | 3.56 | 19.4% |
| FY2024 | ₹0Cr | ₹0Cr | 3.9% | 0.82 | 2.67 | 8.6% |
| FY2025 | ₹0Cr | ₹0Cr | 0.1% | 2.75 | 2.66 | 0.4% |
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.