DuPont Decomposition
Why does BHAGYANGR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.8% = 0.9% × 3.12 × 2.51
Latest: FY2025
Profitability
Net Margin
0.9%
0.7% →0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.12x
4.47x →3.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.51x
2.56x →2.51x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.3 pp over 4 years. Driven by asset turnover declining (4.47x → 3.12x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.7% | 4.47 | 2.56 | 8.1% |
| FY2023 | ₹0Cr | ₹0Cr | 0.6% | 4.36 | 2.87 | 6.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 4.29 | 1.72 | 23.6% |
| FY2025 | ₹0Cr | ₹0Cr | 0.9% | 3.12 | 2.51 | 6.8% |
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.