DuPont Decomposition
Why does GKSL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
38.2% = 12.3% × 1.31 × 2.36
Latest: FY2025
Profitability
Net Margin
12.3%
7.7% →12.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.31x
1.34x →1.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.36x
2.91x →2.36x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.9 pp over 3 years. Driven by net margin improving (7.7% → 12.3%), leverage falling (2.91x → 2.36x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 1.34 | 2.91 | 30.2% |
| FY2024 | ₹0Cr | ₹0Cr | 9.4% | 1.58 | 2.94 | 43.5% |
| FY2025 | ₹0Cr | ₹0Cr | 12.3% | 1.31 | 2.36 | 38.2% |
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.