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%
22.0% →62.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.41x
0.13x →0.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.28x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 25.5 pp over 3 years. Driven by net margin improving (22.0% → 62.4%), asset turnover improving (0.13x → 0.41x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 22.0% | 0.13 | 1.28 | 3.5% |
| FY2024 | ₹0Cr | ₹0Cr | 40.8% | 0.16 | 1.14 | 7.3% |
| 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.