DuPont Decomposition
Why does GTECJAINX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-247.7% = -43.7% × 1.74 × 3.26
Latest: FY2025
Profitability
Net Margin
-43.7%
15.7% →-43.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.74x
1.33x →1.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.26x
1.22x →3.26x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 273.1 pp over 3 years. Driven by net margin declining (15.7% → -43.7%), asset turnover improving (1.33x → 1.74x), leverage rising (1.22x → 3.26x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0.1Cr | ₹0Cr | 15.7% | 1.33 | 1.22 | 25.4% |
| FY2024 | ₹0.1Cr | ₹-0Cr | -1.4% | 1.19 | 1.48 | -2.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -43.7% | 1.74 | 3.26 | -247.7% |
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.