DuPont Decomposition
Why does BATAINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.4% = 3.8% × 0.93 × 2.37
Latest: FY2026
Profitability
Net Margin
3.8%
4.3% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
0.68x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.37x
1.94x →2.37x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.7 pp over 5 years. Driven by asset turnover improving (0.68x → 0.93x), leverage rising (1.94x → 2.37x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.3% | 0.68 | 1.94 | 5.7% |
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 1.05 | 2.27 | 22.5% |
| FY2024 | ₹0Cr | ₹0Cr | 7.5% | 1.04 | 2.19 | 17.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.5% | 0.91 | 2.43 | 21.0% |
| FY2026 | ₹0Cr | ₹0Cr | 3.8% | 0.93 | 2.37 | 8.4% |
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.