DuPont Decomposition
Why does GODREJCP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.4% = 13.0% × 0.73 × 1.64
Latest: FY2025
Profitability
Net Margin
13.0%
14.1% →13.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.18x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.27x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.2 pp over 3 years. Driven by net margin declining (14.1% → 13.0%), asset turnover improving (0.18x → 0.73x), leverage rising (1.27x → 1.64x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.1% | 0.18 | 1.27 | 3.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -55.9% | 0.18 | 1.47 | -15.0% |
| FY2025 | ₹0Cr | ₹0Cr | 13.0% | 0.73 | 1.64 | 15.4% |
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.