DuPont Decomposition
Why does BCONCEPTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.3% = 0.3% × 0.97 × 4.38
Latest: FY2026
Profitability
Net Margin
0.3%
0.7% →0.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
1.14x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.38x
4.15x →4.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.1 pp over 5 years. Driven by asset turnover declining (1.14x → 0.97x), leverage rising (4.15x → 4.38x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.7% | 1.14 | 4.15 | 3.5% |
| FY2023 | ₹0Cr | ₹0Cr | 6.0% | 1.72 | 3.44 | 35.4% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.50 | 2.94 | 18.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.8% | 1.07 | 3.42 | 6.6% |
| FY2026 | ₹0Cr | ₹0Cr | 0.3% | 0.97 | 4.38 | 1.3% |
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.