DuPont Decomposition
Why does GRINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.9% = 15.4% × 0.44 × 1.76
Latest: FY2025
Profitability
Net Margin
15.4%
15.8% →15.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
0.18x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.76x
2.20x →1.76x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.7 pp over 3 years. Driven by asset turnover improving (0.18x → 0.44x), leverage falling (2.20x → 1.76x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 15.8% | 0.18 | 2.20 | 6.2% |
| FY2024 | ₹0Cr | ₹0Cr | 22.3% | 0.19 | 1.70 | 7.3% |
| FY2025 | ₹0Cr | ₹0Cr | 15.4% | 0.44 | 1.76 | 11.9% |
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.