DuPont Decomposition
Why does BTML earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.9% = 5.5% × 0.97 × 2.80
Latest: FY2025
Profitability
Net Margin
5.5%
5.5% →5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
2.83x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.80x
2.29x →2.80x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.5 pp over 4 years. Driven by asset turnover declining (2.83x → 0.97x), leverage rising (2.29x → 2.80x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.5% | 2.83 | 2.29 | 35.4% |
| FY2023 | ₹0Cr | ₹0Cr | 7.6% | 0.94 | 1.83 | 13.1% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 1.04 | 2.27 | 12.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.5% | 0.97 | 2.80 | 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.