DuPont Decomposition
Why does BSOFT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.9% = 9.6% × 1.20 × 1.28
Latest: FY2025
Profitability
Net Margin
9.6%
9.2% →9.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.20x
0.38x →1.20x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.30x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.3 pp over 3 years. Driven by asset turnover improving (0.38x → 1.20x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.2% | 0.38 | 1.30 | 4.6% |
| FY2024 | ₹0Cr | ₹0Cr | 13.2% | 0.35 | 1.29 | 5.9% |
| FY2025 | ₹0Cr | ₹0Cr | 9.6% | 1.20 | 1.28 | 14.9% |
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.