DuPont Decomposition
Why does BHARATRAS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.5% = 12.1% × 0.82 × 1.25
Latest: FY2025
Profitability
Net Margin
12.1%
10.1% →12.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
1.15x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.20x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.5 pp over 3 years. Driven by net margin improving (10.1% → 12.1%), asset turnover declining (1.15x → 0.82x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.1% | 1.15 | 1.20 | 13.9% |
| FY2024 | ₹0Cr | ₹0Cr | 9.1% | 0.87 | 1.21 | 9.7% |
| FY2025 | ₹0Cr | ₹0Cr | 12.1% | 0.82 | 1.25 | 12.5% |
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.