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
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -1.6% | 0.81 | 3.49 | -4.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.1% | 0.75 | 3.43 | -0.1% |
| FY2024 | ₹0Cr | ₹0Cr | 5.7% | 0.88 | 2.88 | 14.6% |
| FY2025 | ₹0Cr | ₹0Cr | 14.2% | 0.92 | 2.63 | 34.3% |
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)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.