DuPont Decomposition
Why does GMRP&UI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
197.5% = 22.6% × 0.37 × 23.67
Latest: FY2025
Profitability
Net Margin
22.6%
22.6% →22.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.37x
0.37x →0.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
23.67x
23.67x →23.67x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 22.6% | 0.37 | 23.67 | 197.5% |
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.