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
25.2% = 17.5% × 0.44 × 3.25
Latest: FY2025
Profitability
Net Margin
17.5%
31.0% →17.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
0.32x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.25x
4.56x →3.25x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.6 pp over 4 years. Driven by net margin declining (31.0% → 17.5%), asset turnover improving (0.32x → 0.44x), leverage falling (4.56x → 3.25x).
Historical Decomposition
Last 4 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 | 11.9% | 0.10 | 3.99 | 4.8% |
| FY2025 | ₹0Cr | ₹0Cr | 17.5% | 0.44 | 3.25 | 25.2% |
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.