DuPont Decomposition
Why does BOSCH-HCIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.2% = 2.2% × 1.52 × 2.81
Latest: FY2025
Profitability
Net Margin
2.2%
-0.1% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.52x
1.32x →1.52x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.81x
2.71x →2.81x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.3 pp over 3 years. Driven by net margin improving (-0.1% → 2.2%), asset turnover improving (1.32x → 1.52x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -0.1% | 1.32 | 2.71 | -0.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 1.15 | 2.84 | 8.4% |
| FY2025 | ₹0Cr | ₹0Cr | 2.2% | 1.52 | 2.81 | 9.2% |
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.