DuPont Decomposition
Why does BHARTIHEXA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.2% = 18.5% × 0.49 × 2.66
Latest: FY2026
Profitability
Net Margin
18.5%
31.0% →18.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.32x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.66x
4.56x →2.66x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.6 pp over 5 years. Driven by net margin declining (31.0% → 18.5%), asset turnover improving (0.32x → 0.49x), leverage falling (4.56x → 2.66x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 31.0% | 0.32 | 4.56 | 45.8% |
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 0.36 | 4.34 | 13.1% |
| FY2024 | ₹0Cr | ₹0Cr | 7.1% | 0.38 | 4.17 | 11.4% |
| FY2025 | ₹0Cr | ₹0Cr | 17.5% | 0.44 | 3.25 | 25.2% |
| FY2026 | ₹0Cr | ₹0Cr | 18.5% | 0.49 | 2.66 | 24.2% |
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.