DuPont Decomposition
Why does BAJAJHIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.6% = -0.4% × 0.36 × 3.61
Latest: FY2025
Profitability
Net Margin
-0.4%
2.1% →-0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.39x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.61x
3.60x →3.61x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.5 pp over 3 years. Driven by net margin declining (2.1% → -0.4%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.1% | 0.39 | 3.60 | 3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 1.5% | 0.38 | 3.55 | 2.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.4% | 0.36 | 3.61 | -0.6% |
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.