DuPont Decomposition
Why does BLBLIMITED earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.0% = 0.7% × 5.45 × 1.01
Latest: FY2025
Profitability
Net Margin
0.7%
2.7% →0.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
5.45x
3.78x →5.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.01x
1.07x →1.01x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.8 pp over 4 years. Driven by net margin declining (2.7% → 0.7%), asset turnover improving (3.78x → 5.45x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.7% | 3.78 | 1.07 | 10.8% |
| FY2023 | ₹0Cr | ₹0Cr | 2.8% | 2.21 | 1.04 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 0.8% | 3.17 | 1.02 | 2.7% |
| FY2025 | ₹0Cr | ₹0Cr | 0.7% | 5.45 | 1.01 | 4.0% |
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.