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
11.3% = 11.5% × 0.61 × 1.62
Latest: FY2026
Profitability
Net Margin
11.5%
17.5% →11.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.61x
0.75x →0.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.58x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.3 pp over 5 years. Driven by net margin declining (17.5% → 11.5%), asset turnover declining (0.75x → 0.61x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 17.5% | 0.75 | 1.58 | 20.7% |
| FY2023 | ₹0Cr | ₹0Cr | 11.0% | 0.78 | 1.63 | 14.0% |
| FY2024 | ₹0Cr | ₹0Cr | 15.8% | 0.68 | 1.55 | 16.6% |
| FY2025 | ₹0Cr | ₹0Cr | 15.8% | 0.67 | 1.51 | 15.9% |
| FY2026 | ₹0Cr | ₹0Cr | 11.5% | 0.61 | 1.62 | 11.3% |
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.