DuPont Decomposition
Why does JHS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-1.1% = -1.9% × 0.47 × 1.23
Latest: FY2026
Profitability
Net Margin
-1.9%
-4.7% →-1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.47x
0.39x →0.47x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.19x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.1 pp over 5 years. Driven by net margin improving (-4.7% → -1.9%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -4.7% | 0.39 | 1.19 | -2.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -20.8% | 0.37 | 1.31 | -10.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -5.8% | 0.35 | 1.16 | -2.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -21.5% | 0.46 | 1.16 | -11.4% |
| FY2026 | ₹0Cr | ₹-0Cr | -1.9% | 0.47 | 1.23 | -1.1% |
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.