DuPont Decomposition
Why does BAFNAPH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.9% = 2.9% × 0.95 × 1.81
Latest: FY2025
Profitability
Net Margin
2.9%
9.8% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
0.89x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
1.76x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.5 pp over 3 years. Driven by net margin declining (9.8% → 2.9%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.8% | 0.89 | 1.76 | 15.4% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 1.03 | 1.83 | 9.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.9% | 0.95 | 1.81 | 4.9% |
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.