DuPont Decomposition
Why does JINDALPOLY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.7% = 2.1% × 0.48 × 2.66
Latest: FY2025
Profitability
Net Margin
2.1%
20.4% →2.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.89x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.66x
1.72x →2.66x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 28.5 pp over 4 years. Driven by net margin declining (20.4% → 2.1%), asset turnover declining (0.89x → 0.48x), leverage rising (1.72x → 2.66x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 20.4% | 0.89 | 1.72 | 31.2% |
| FY2023 | ₹0Cr | ₹0Cr | 6.9% | 0.48 | 2.29 | 7.6% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 0.36 | 2.64 | 1.8% |
| FY2025 | ₹0Cr | ₹0Cr | 2.1% | 0.48 | 2.66 | 2.7% |
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.