DuPont Decomposition
Why does 3MINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
29.5% = 10.3% × 1.62 × 1.77
Latest: FY2026
Profitability
Net Margin
10.3%
8.2% →10.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.62x
1.11x →1.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.77x
1.38x →1.77x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.1 pp over 5 years. Driven by net margin improving (8.2% → 10.3%), asset turnover improving (1.11x → 1.62x), leverage rising (1.38x → 1.77x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.2% | 1.11 | 1.38 | 12.5% |
| FY2023 | ₹0Cr | ₹0Cr | 11.4% | 1.46 | 1.62 | 26.9% |
| FY2024 | ₹0Cr | ₹0Cr | 13.9% | 1.29 | 1.51 | 27.2% |
| FY2025 | ₹0Cr | ₹0Cr | 10.7% | 1.47 | 1.63 | 25.8% |
| FY2026 | ₹0Cr | ₹0Cr | 10.3% | 1.62 | 1.77 | 29.5% |
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.