DuPont Decomposition
Why does BDL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.7% = 16.5% × 0.28 × 2.93
Latest: FY2025
Profitability
Net Margin
16.5%
14.2% →16.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.28x
0.29x →0.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.93x
2.70x →2.93x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.7 pp over 3 years. Driven by net margin improving (14.2% → 16.5%), leverage rising (2.70x → 2.93x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.2% | 0.29 | 2.70 | 11.0% |
| FY2024 | ₹0Cr | ₹0Cr | 25.9% | 0.23 | 2.84 | 16.9% |
| FY2025 | ₹0Cr | ₹0Cr | 16.5% | 0.28 | 2.93 | 13.7% |
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.