DuPont Decomposition
Why does BELRISE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.1% = 4.4% × 1.13 × 2.66
Latest: FY2025
Profitability
Net Margin
4.4%
5.0% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.13x
1.00x →1.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.66x
2.99x →2.66x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.0 pp over 4 years. Driven by asset turnover improving (1.00x → 1.13x), leverage falling (2.99x → 2.66x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.0% | 1.00 | 2.99 | 15.1% |
| FY2023 | ₹0Cr | ₹0Cr | 4.9% | 1.12 | 2.78 | 15.3% |
| FY2024 | ₹0Cr | ₹0Cr | 4.3% | 1.21 | 2.58 | 13.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.4% | 1.13 | 2.66 | 13.1% |
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.