DuPont Decomposition
Why does BBTCL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-5.0% = -1.1% × 1.16 × 3.83
Latest: FY2025
Profitability
Net Margin
-1.1%
7.8% →-1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.16x
1.73x →1.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.83x
2.04x →3.83x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 32.6 pp over 4 years. Driven by net margin declining (7.8% → -1.1%), asset turnover declining (1.73x → 1.16x), leverage rising (2.04x → 3.83x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.8% | 1.73 | 2.04 | 27.6% |
| FY2023 | ₹0Cr | ₹0Cr | 6.9% | 0.29 | 2.62 | 5.3% |
| FY2024 | ₹0Cr | ₹0Cr | 3.6% | 0.28 | 3.05 | 3.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -1.1% | 1.16 | 3.83 | -5.0% |
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.