DuPont Decomposition
Why does BSHSL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.2% = 7.4% × 1.62 × 2.12
Latest: FY2025
Profitability
Net Margin
7.4%
7.4% →7.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.62x
1.72x →1.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.12x
2.36x →2.12x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.6 pp over 3 years. Driven by leverage falling (2.36x → 2.12x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.4% | 1.72 | 2.36 | 29.8% |
| FY2024 | ₹0Cr | ₹0Cr | 8.7% | 1.58 | 2.07 | 28.4% |
| FY2025 | ₹0Cr | ₹0Cr | 7.4% | 1.62 | 2.12 | 25.2% |
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.