DuPont Decomposition
Why does BLUESTONE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-24.4% = -12.5% × 0.50 × 3.88
Latest: FY2025
Profitability
Net Margin
-12.5%
-11.2% →-12.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.52x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.88x
6.56x →3.88x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.6 pp over 2 years. Driven by net margin declining (-11.2% → -12.5%), leverage falling (6.56x → 3.88x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹-0Cr | -11.2% | 0.52 | 6.56 | -38.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -12.5% | 0.50 | 3.88 | -24.4% |
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.