DuPont Decomposition
Why does BVCL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.2% = 0.1% × 1.01 × 1.68
Latest: FY2026
Profitability
Net Margin
0.1%
-2.6% →0.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.01x
0.75x →1.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
2.13x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.4 pp over 5 years. Driven by net margin improving (-2.6% → 0.1%), asset turnover improving (0.75x → 1.01x), leverage falling (2.13x → 1.68x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2.6% | 0.75 | 2.13 | -4.2% |
| FY2023 | ₹0Cr | ₹0Cr | 2.9% | 0.77 | 2.06 | 4.6% |
| FY2024 | ₹0Cr | ₹0Cr | 3.1% | 1.00 | 1.95 | 6.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.5% | 0.95 | 1.75 | 4.1% |
| FY2026 | ₹0Cr | ₹0Cr | 0.1% | 1.01 | 1.68 | 0.2% |
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.