DuPont Decomposition
Why does GKENERGY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.0% = 11.9% × 1.31 × 1.47
Latest: FY2026
Profitability
Net Margin
11.9%
2.2% →11.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.31x
1.01x →1.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.47x
7.66x →1.47x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.9 pp over 5 years. Driven by net margin improving (2.2% → 11.9%), asset turnover improving (1.01x → 1.31x), leverage falling (7.66x → 1.47x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.2% | 1.01 | 7.66 | 17.1% |
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 2.00 | 7.19 | 50.7% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 1.92 | 3.83 | 64.5% |
| FY2025 | ₹0Cr | ₹0Cr | 12.2% | 1.88 | 2.79 | 63.7% |
| FY2026 | ₹0Cr | ₹0Cr | 11.9% | 1.31 | 1.47 | 23.0% |
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.