DuPont Decomposition
Why does BHARATWIRE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.8% = 11.7% × 0.65 × 1.30
Latest: FY2025
Profitability
Net Margin
11.7%
9.8% →11.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.21x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.39x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.0 pp over 3 years. Driven by net margin improving (9.8% → 11.7%), asset turnover improving (0.21x → 0.65x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.8% | 0.21 | 1.39 | 2.9% |
| FY2024 | ₹0Cr | ₹0Cr | 14.7% | 0.18 | 1.24 | 3.3% |
| FY2025 | ₹0Cr | ₹0Cr | 11.7% | 0.65 | 1.30 | 9.8% |
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.