DuPont Decomposition
Why does BALRAMCHIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.5% = 8.1% × 0.76 × 1.88
Latest: FY2025
Profitability
Net Margin
8.1%
6.1% →8.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.76x
0.86x →0.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.88x
1.87x →1.88x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.7 pp over 3 years. Driven by net margin improving (6.1% → 8.1%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 0.86 | 1.87 | 9.8% |
| FY2024 | ₹0Cr | ₹0Cr | 7.7% | 0.94 | 1.81 | 13.2% |
| FY2025 | ₹0Cr | ₹0Cr | 8.1% | 0.76 | 1.88 | 11.5% |
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.