DuPont Decomposition
Why does MUNJALAU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.8% = 1.8% × 1.65 × 2.98
Latest: FY2025
Profitability
Net Margin
1.8%
1.4% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.65x
1.97x →1.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.98x
2.85x →2.98x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~9%. Driven by asset turnover declining (1.97x → 1.65x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.4% | 1.97 | 2.85 | 7.9% |
| FY2023 | ₹0Cr | ₹0Cr | 2.9% | 1.54 | 3.32 | 14.6% |
| FY2024 | ₹0Cr | ₹0Cr | 2.1% | 1.53 | 3.04 | 9.6% |
| FY2025 | ₹0Cr | ₹0Cr | 1.8% | 1.65 | 2.98 | 8.8% |
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.