DuPont Decomposition
Why does BALUFORGE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.4% = 22.5% × 0.72 × 1.19
Latest: FY2025
Profitability
Net Margin
22.5%
10.8% →22.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.97x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.79x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~19%. Driven by net margin improving (10.8% → 22.5%), asset turnover declining (0.97x → 0.72x), leverage falling (1.79x → 1.19x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.8% | 0.97 | 1.79 | 18.8% |
| FY2023 | ₹0Cr | ₹0Cr | 12.1% | 0.87 | 1.88 | 19.7% |
| FY2024 | ₹0Cr | ₹0Cr | 16.7% | 0.79 | 1.29 | 16.9% |
| FY2025 | ₹0Cr | ₹0Cr | 22.5% | 0.72 | 1.19 | 19.4% |
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.