DuPont Decomposition
Why does BALKRISIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.9% = 16.0% × 0.66 × 1.51
Latest: FY2025
Profitability
Net Margin
16.0%
11.2% →16.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.66x
0.19x →0.66x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.51x
1.63x →1.51x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.5 pp over 3 years. Driven by net margin improving (11.2% → 16.0%), asset turnover improving (0.19x → 0.66x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.2% | 0.19 | 1.63 | 3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 18.1% | 0.20 | 1.55 | 5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 16.0% | 0.66 | 1.51 | 15.9% |
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.