DuPont Decomposition
Why does BBTC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.4% = 6.3% × 1.41 × 1.63
Latest: FY2025
Profitability
Net Margin
6.3%
116.8% →6.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.41x
0.05x →1.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.63x
6.10x →1.63x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.8 pp over 3 years. Driven by net margin declining (116.8% → 6.3%), asset turnover improving (0.05x → 1.41x), leverage falling (6.10x → 1.63x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 116.8% | 0.05 | 6.10 | 36.2% |
| FY2024 | ₹0Cr | ₹0Cr | 12.7% | 0.35 | 2.56 | 11.3% |
| FY2025 | ₹0Cr | ₹0Cr | 6.3% | 1.41 | 1.63 | 14.4% |
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.