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
26.7% = 12.5% × 0.75 × 2.86
Latest: FY2026
Profitability
Net Margin
12.5%
8.5% →12.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.45x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.86x
1.58x →2.86x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 20.7 pp over 5 years. Driven by net margin improving (8.5% → 12.5%), asset turnover improving (0.45x → 0.75x), leverage rising (1.58x → 2.86x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.5% | 0.45 | 1.58 | 6.0% |
| 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 | 12.8% | 0.56 | 2.33 | 16.7% |
| FY2026 | ₹0Cr | ₹0Cr | 12.5% | 0.75 | 2.86 | 26.7% |
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.