DuPont Decomposition
Why does GENUSPOWER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.7% = 13.0% × 0.55 × 2.33
Latest: FY2025
Profitability
Net Margin
13.0%
3.6% →13.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.55x
0.48x →0.55x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.33x
1.70x →2.33x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.7 pp over 3 years. Driven by net margin improving (3.6% → 13.0%), leverage rising (1.70x → 2.33x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.6% | 0.48 | 1.70 | 3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 7.3% | 0.43 | 1.76 | 5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 13.0% | 0.55 | 2.33 | 16.7% |
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.