DuPont Decomposition
Why does BEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
26.6% = 23.0% × 0.57 × 2.04
Latest: FY2025
Profitability
Net Margin
23.0%
21.3% →23.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
0.18x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.04x
2.56x →2.04x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 16.6 pp over 3 years. Driven by net margin improving (21.3% → 23.0%), asset turnover improving (0.18x → 0.57x), leverage falling (2.56x → 2.04x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 21.3% | 0.18 | 2.56 | 10.0% |
| FY2024 | ₹0Cr | ₹0Cr | 21.0% | 0.22 | 2.42 | 11.0% |
| FY2025 | ₹0Cr | ₹0Cr | 23.0% | 0.57 | 2.04 | 26.6% |
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.