DuPont Decomposition
Why does BLUEDART earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.2% = 4.4% × 1.56 × 2.35
Latest: FY2025
Profitability
Net Margin
4.4%
7.2% →4.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.56x
1.60x →1.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.35x
2.73x →2.35x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.2 pp over 3 years. Driven by net margin declining (7.2% → 4.4%), leverage falling (2.73x → 2.35x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.2% | 1.60 | 2.73 | 31.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.7% | 1.52 | 2.53 | 22.0% |
| FY2025 | ₹0Cr | ₹0Cr | 4.4% | 1.56 | 2.35 | 16.2% |
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.