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
17.6% = 6.5% × 1.32 × 2.06
Latest: FY2026
Profitability
Net Margin
6.5%
0.4% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.32x
0.94x →1.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.06x
2.78x →2.06x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 16.5 pp over 5 years. Driven by net margin improving (0.4% → 6.5%), asset turnover improving (0.94x → 1.32x), leverage falling (2.78x → 2.06x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.4% | 0.94 | 2.78 | 1.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -10.3% | 1.04 | 3.90 | -41.6% |
| FY2024 | ₹0Cr | ₹0Cr | 3.8% | 1.42 | 2.57 | 13.8% |
| FY2025 | ₹0Cr | ₹0Cr | 6.3% | 1.41 | 2.26 | 19.9% |
| FY2026 | ₹0Cr | ₹0Cr | 6.5% | 1.32 | 2.06 | 17.6% |
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.