DuPont Decomposition
Why does GVPIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
43.4% = 19.9% × 0.59 × 3.67
Latest: FY2026
Profitability
Net Margin
19.9%
-11.0% →19.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.76x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.67x
5.12x →3.67x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 86.1 pp over 5 years. Driven by net margin improving (-11.0% → 19.9%), asset turnover declining (0.76x → 0.59x), leverage falling (5.12x → 3.67x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -11.0% | 0.76 | 5.12 | -42.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -24.6% | 0.62 | 12.32 | -189.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -16.6% | 0.40 | 37.51 | -249.0% |
| FY2025 | ₹0Cr | ₹0Cr | 19.4% | 0.52 | 6.36 | 64.1% |
| FY2026 | ₹0Cr | ₹0Cr | 19.9% | 0.59 | 3.67 | 43.4% |
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.