DuPont Decomposition
Why does GALAPREC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.5% = 11.7% × 0.72 × 1.25
Latest: FY2025
Profitability
Net Margin
11.7%
4.8% →11.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.96x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
2.45x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~10%. Driven by net margin improving (4.8% → 11.7%), asset turnover declining (0.96x → 0.72x), leverage falling (2.45x → 1.25x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 0.96 | 2.45 | 11.2% |
| FY2023 | ₹0Cr | ₹0Cr | 15.3% | 0.93 | 2.04 | 28.9% |
| FY2024 | ₹0Cr | ₹0Cr | 11.5% | 1.03 | 1.81 | 21.4% |
| FY2025 | ₹0Cr | ₹0Cr | 11.7% | 0.72 | 1.25 | 10.5% |
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.