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
12.6% = 4.1% × 1.69 × 1.81
Latest: FY2026
Profitability
Net Margin
4.1%
4.3% →4.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.69x
2.58x →1.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
2.07x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.5 pp over 5 years. Driven by asset turnover declining (2.58x → 1.69x), leverage falling (2.07x → 1.81x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.3% | 2.58 | 2.07 | 23.1% |
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 1.64 | 2.28 | 13.8% |
| FY2024 | ₹0Cr | ₹0Cr | 4.3% | 1.61 | 2.00 | 13.9% |
| FY2025 | ₹0Cr | ₹0Cr | 3.4% | 1.81 | 1.94 | 11.8% |
| FY2026 | ₹0Cr | ₹0Cr | 4.1% | 1.69 | 1.81 | 12.6% |
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.