DuPont Decomposition
Why does GVPTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-1.6% = -46.5% × 0.03 × 1.30
Latest: FY2025
Profitability
Net Margin
-46.5%
4113.1% →-46.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.03x
0.01x →0.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.06x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 40.4 pp over 4 years. Driven by net margin declining (4113.1% → -46.5%), leverage rising (1.06x → 1.30x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4113.1% | 0.01 | 1.06 | 38.8% |
| FY2023 | ₹0Cr | ₹0Cr | 25.4% | 0.10 | 1.02 | 2.7% |
| FY2024 | ₹0Cr | ₹0Cr | 8.5% | 0.19 | 1.04 | 1.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -46.5% | 0.03 | 1.30 | -1.6% |
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.