DuPont Decomposition
Why does GROBTEA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.2% = 5.0% × 0.70 × 1.76
Latest: FY2026
Profitability
Net Margin
5.0%
4.5% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.94x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.76x
1.26x →1.76x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~6%. Driven by asset turnover declining (0.94x → 0.70x), leverage rising (1.26x → 1.76x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.5% | 0.94 | 1.26 | 5.3% |
| FY2023 | ₹0Cr | ₹0Cr | 0.6% | 0.95 | 1.38 | 0.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.0% | 0.97 | 1.31 | -0.0% |
| FY2025 | ₹0Cr | ₹0Cr | 8.5% | 0.96 | 1.41 | 11.5% |
| FY2026 | ₹0Cr | ₹0Cr | 5.0% | 0.70 | 1.76 | 6.2% |
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.