DuPont Decomposition
Why does BONLON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.3% = 0.4% × 4.82 × 1.57
Latest: FY2025
Profitability
Net Margin
0.4%
0.6% →0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
4.82x
3.75x →4.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.57x
1.37x →1.57x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~3%. Driven by asset turnover improving (3.75x → 4.82x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.6% | 3.75 | 1.37 | 2.8% |
| FY2023 | ₹0Cr | ₹0Cr | 0.3% | 4.35 | 1.53 | 2.2% |
| FY2024 | ₹0Cr | ₹0Cr | 0.5% | 3.23 | 1.68 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 0.4% | 4.82 | 1.57 | 3.3% |
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.