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
6.6% = 1.8% × 1.07 × 3.42
Latest: FY2025
Profitability
Net Margin
1.8%
6.0% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
1.72x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.42x
3.44x →3.42x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 28.8 pp over 3 years. Driven by net margin declining (6.0% → 1.8%), asset turnover declining (1.72x → 1.07x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.0% | 1.72 | 3.44 | 35.4% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.80 | 2.89 | 21.6% |
| FY2025 | ₹0Cr | ₹0Cr | 1.8% | 1.07 | 3.42 | 6.6% |
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.