DuPont Decomposition
Why does BRNL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
33.4% = 51.5% × 0.19 × 3.40
Latest: FY2025
Profitability
Net Margin
51.5%
-173.9% →51.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.19x
0.08x →0.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.40x
4.73x →3.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 96.0 pp over 4 years. Driven by net margin improving (-173.9% → 51.5%), asset turnover improving (0.08x → 0.19x), leverage falling (4.73x → 3.40x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -173.9% | 0.08 | 4.73 | -62.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -64.2% | 0.12 | 6.77 | -52.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -29.5% | 0.14 | 9.55 | -39.1% |
| FY2025 | ₹0Cr | ₹0Cr | 51.5% | 0.19 | 3.40 | 33.4% |
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.