DuPont Decomposition
Why does BEML earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.8% = 3.3% × 0.62 × 2.39
Latest: FY2026
Profitability
Net Margin
3.3%
3.0% →3.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
0.76x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.39x
2.42x →2.39x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~5%. Driven by asset turnover declining (0.76x → 0.62x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.0% | 0.76 | 2.42 | 5.5% |
| FY2023 | ₹0Cr | ₹0Cr | 4.2% | 0.76 | 2.07 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 7.1% | 0.73 | 2.04 | 10.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 0.68 | 2.03 | 10.1% |
| FY2026 | ₹0Cr | ₹0Cr | 3.3% | 0.62 | 2.39 | 4.8% |
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.