DuPont Decomposition
Why does GLOTTIS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
57.0% = 6.0% × 6.03 × 1.58
Latest: FY2025
Profitability
Net Margin
6.0%
4.7% →6.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
6.03x
6.64x →6.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.58x
6.26x →1.58x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 137.8 pp over 3 years. Driven by net margin improving (4.7% → 6.0%), asset turnover declining (6.64x → 6.03x), leverage falling (6.26x → 1.58x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.7% | 6.64 | 6.26 | 194.8% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 6.08 | 1.93 | 73.1% |
| FY2025 | ₹0Cr | ₹0Cr | 6.0% | 6.03 | 1.58 | 57.0% |
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.