DuPont Decomposition
Why does BCLIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.4% = 3.4% × 1.81 × 1.87
Latest: FY2025
Profitability
Net Margin
3.4%
4.4% →3.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.81x
1.66x →1.81x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
2.01x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.3 pp over 3 years. Driven by net margin declining (4.4% → 3.4%), asset turnover improving (1.66x → 1.81x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.4% | 1.66 | 2.01 | 14.7% |
| FY2024 | ₹0Cr | ₹0Cr | 4.4% | 1.69 | 2.00 | 14.7% |
| FY2025 | ₹0Cr | ₹0Cr | 3.4% | 1.81 | 1.87 | 11.4% |
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.