DuPont Decomposition
Why does GULPOLY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.0% = 1.2% × 1.51 × 2.16
Latest: FY2025
Profitability
Net Margin
1.2%
4.8% →1.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.51x
0.31x →1.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.16x
1.72x →2.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.5 pp over 3 years. Driven by net margin declining (4.8% → 1.2%), asset turnover improving (0.31x → 1.51x), leverage rising (1.72x → 2.16x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.8% | 0.31 | 1.72 | 2.5% |
| FY2024 | ₹0Cr | ₹0Cr | 1.6% | 0.35 | 1.96 | 1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 1.2% | 1.51 | 2.16 | 4.0% |
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.