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
13.9% = 4.0% × 1.49 × 2.32
Latest: FY2026
Profitability
Net Margin
4.0%
8.7% →4.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.49x
1.56x →1.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.32x
3.24x →2.32x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 29.9 pp over 5 years. Driven by net margin declining (8.7% → 4.0%), leverage falling (3.24x → 2.32x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.7% | 1.56 | 3.24 | 43.8% |
| 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% |
| FY2026 | ₹0Cr | ₹0Cr | 4.0% | 1.49 | 2.32 | 13.9% |
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.