DuPont Decomposition
Why does BHARATSE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.8% = 2.5% × 1.99 × 3.33
Latest: FY2025
Profitability
Net Margin
2.5%
1.5% →2.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.99x
2.42x →1.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.33x
2.65x →3.33x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.4 pp over 4 years. Driven by net margin improving (1.5% → 2.5%), asset turnover declining (2.42x → 1.99x), leverage rising (2.65x → 3.33x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 2.42 | 2.65 | 9.4% |
| FY2023 | ₹0Cr | ₹0Cr | 2.0% | 2.93 | 2.44 | 14.7% |
| FY2024 | ₹0Cr | ₹0Cr | 2.4% | 2.11 | 3.03 | 15.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.5% | 1.99 | 3.33 | 16.8% |
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.