DuPont Decomposition
Why does GALLANTT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.1% = 9.8% × 1.15 × 1.25
Latest: FY2025
Profitability
Net Margin
9.8%
6.3% →9.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.15x
0.36x →1.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.33x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.1 pp over 3 years. Driven by net margin improving (6.3% → 9.8%), asset turnover improving (0.36x → 1.15x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.3% | 0.36 | 1.33 | 3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 8.1% | 0.38 | 1.28 | 3.9% |
| FY2025 | ₹0Cr | ₹0Cr | 9.8% | 1.15 | 1.25 | 14.1% |
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.