DuPont Decomposition
Why does GPTINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.5% = 6.8% × 1.25 × 1.83
Latest: FY2025
Profitability
Net Margin
6.8%
3.9% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.25x
1.03x →1.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.83x
2.82x →1.83x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.2 pp over 3 years. Driven by net margin improving (3.9% → 6.8%), asset turnover improving (1.03x → 1.25x), leverage falling (2.82x → 1.83x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.9% | 1.03 | 2.82 | 11.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.7% | 1.39 | 2.40 | 19.1% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 1.25 | 1.83 | 15.5% |
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.