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
8.9% = 12.3% × 0.60 × 1.22
Latest: FY2026
Profitability
Net Margin
12.3%
3.6% →12.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.60x
0.49x →0.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.71x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.9 pp over 5 years. Driven by net margin improving (3.6% → 12.3%), asset turnover improving (0.49x → 0.60x), leverage falling (1.71x → 1.22x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.6% | 0.49 | 1.71 | 3.0% |
| FY2023 | ₹0Cr | ₹0Cr | 11.3% | 0.70 | 1.39 | 11.1% |
| FY2024 | ₹0Cr | ₹0Cr | 15.5% | 0.74 | 1.26 | 14.6% |
| FY2025 | ₹0Cr | ₹0Cr | 11.7% | 0.65 | 1.30 | 9.8% |
| FY2026 | ₹0Cr | ₹0Cr | 12.3% | 0.60 | 1.22 | 8.9% |
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.