DuPont Decomposition
Why does BIRLANU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.7% = -0.9% × 1.23 × 2.42
Latest: FY2025
Profitability
Net Margin
-0.9%
0.5% →-0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.23x
0.37x →1.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.42x
1.90x →2.42x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.1 pp over 3 years. Driven by net margin declining (0.5% → -0.9%), asset turnover improving (0.37x → 1.23x), leverage rising (1.90x → 2.42x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.5% | 0.37 | 1.90 | 0.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.0% | 0.31 | 2.19 | -0.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.9% | 1.23 | 2.42 | -2.7% |
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.