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
10.1% = 18.1% × 0.40 × 1.40
Latest: FY2025
Profitability
Net Margin
18.1%
4.3% →18.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.40x
0.09x →0.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.25x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.6 pp over 3 years. Driven by net margin improving (4.3% → 18.1%), asset turnover improving (0.09x → 0.40x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 0.09 | 1.25 | 0.5% |
| FY2024 | ₹0Cr | ₹0Cr | 20.8% | 0.11 | 1.30 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 18.1% | 0.40 | 1.40 | 10.1% |
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.