DuPont Decomposition

Why does GVT&D earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

34.3% = 14.2% × 0.92 × 2.63

Latest: FY2025

Profitability

Net Margin

14.2%

-1.6% →14.2%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.92x

0.81x →0.92x

Revenue per ₹ of assets

Leverage

Equity Multiplier

2.63x

3.49x →2.63x

Assets funded by equity vs debt

Trend Analysis

ROE improved by 38.9 pp over 4 years. Driven by net margin improving (-1.6% → 14.2%), asset turnover improving (0.81x → 0.92x), leverage falling (3.49x → 2.63x).

Historical Decomposition

Last 4 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20220Cr-0Cr-1.6%0.813.49-4.6%
FY20230Cr-0Cr-0.1%0.753.43-0.1%
FY20240Cr0Cr5.7%0.882.8814.6%
FY20250Cr0Cr14.2%0.922.6334.3%

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)

See DCF fair value for GVT&D

Combine financial quality with intrinsic value.

See Fair Value →

DuPont decomposition from audited annual financials. Factual analysis, not investment advice.