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
-7.9% = -23.3% × 0.25 × 1.37
Latest: FY2026
Profitability
Net Margin
-23.3%
-39.3% →-23.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.25x
0.50x →0.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.53x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 21.9 pp over 5 years. Driven by net margin improving (-39.3% → -23.3%), asset turnover declining (0.50x → 0.25x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -39.3% | 0.50 | 1.53 | -29.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -6.3% | 0.85 | 1.71 | -9.1% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 0.88 | 1.64 | 4.6% |
| FY2025 | ₹0Cr | ₹0Cr | 19.2% | 0.57 | 1.22 | 13.3% |
| FY2026 | ₹0Cr | ₹-0Cr | -23.3% | 0.25 | 1.37 | -7.9% |
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.