DuPont Decomposition
Why does BANARISUG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.9% = 5.8% × 0.80 × 1.25
Latest: FY2025
Profitability
Net Margin
5.8%
5.7% →5.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
1.07x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.52x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.4 pp over 3 years. Driven by asset turnover declining (1.07x → 0.80x), leverage falling (1.52x → 1.25x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.7% | 1.07 | 1.52 | 9.2% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 0.91 | 1.44 | 9.0% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 0.80 | 1.25 | 5.9% |
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.