DuPont Decomposition
Why does GMDCLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.5% = 36.0% × 0.30 × 1.27
Latest: FY2026
Profitability
Net Margin
36.0%
16.3% →36.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.30x
0.46x →0.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.22x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.3 pp over 5 years. Driven by net margin improving (16.3% → 36.0%), asset turnover declining (0.46x → 0.30x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.3% | 0.46 | 1.22 | 9.3% |
| FY2023 | ₹0Cr | ₹0Cr | 34.4% | 0.50 | 1.20 | 20.8% |
| FY2024 | ₹0Cr | ₹0Cr | 24.3% | 0.33 | 1.21 | 9.8% |
| FY2025 | ₹0Cr | ₹0Cr | 23.9% | 0.37 | 1.21 | 10.6% |
| FY2026 | ₹0Cr | ₹0Cr | 36.0% | 0.30 | 1.27 | 13.5% |
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.