DuPont Decomposition
Why does GENESYS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.6% = 9.9% × 0.34 × 1.38
Latest: FY2026
Profitability
Net Margin
9.9%
11.5% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.37x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.56x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.9 pp over 5 years. Driven by net margin declining (11.5% → 9.9%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.5% | 0.37 | 1.56 | 6.5% |
| FY2023 | ₹0Cr | ₹0Cr | 10.5% | 0.36 | 1.25 | 4.7% |
| FY2024 | ₹0Cr | ₹0Cr | 11.1% | 0.31 | 1.30 | 4.5% |
| FY2025 | ₹0Cr | ₹0Cr | 18.1% | 0.40 | 1.40 | 10.1% |
| FY2026 | ₹0Cr | ₹0Cr | 9.9% | 0.34 | 1.38 | 4.6% |
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.