DuPont Decomposition
Why does BALAJITELE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.3% = 19.2% × 0.57 × 1.22
Latest: FY2025
Profitability
Net Margin
19.2%
5.3% →19.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
0.21x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.71x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.4 pp over 3 years. Driven by net margin improving (5.3% → 19.2%), asset turnover improving (0.21x → 0.57x), leverage falling (1.71x → 1.22x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.3% | 0.21 | 1.71 | 1.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.9% | 0.19 | 1.64 | -0.6% |
| FY2025 | ₹0Cr | ₹0Cr | 19.2% | 0.57 | 1.22 | 13.3% |
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.