DuPont Decomposition
Why does GANESHHOU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
29.1% = 62.4% × 0.41 × 1.14
Latest: FY2025
Profitability
Net Margin
62.4%
19.1% →62.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.41x
0.31x →0.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.49x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 20.1 pp over 4 years. Driven by net margin improving (19.1% → 62.4%), leverage falling (1.49x → 1.14x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 19.1% | 0.31 | 1.49 | 8.9% |
| FY2023 | ₹0Cr | ₹0Cr | 16.5% | 0.43 | 1.28 | 9.0% |
| FY2024 | ₹0Cr | ₹0Cr | 51.9% | 0.50 | 1.14 | 29.7% |
| FY2025 | ₹0Cr | ₹0Cr | 62.4% | 0.41 | 1.14 | 29.1% |
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.