DuPont Decomposition
Why does JINDALSAW earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.7% = 5.6% × 0.80 × 1.72
Latest: FY2026
Profitability
Net Margin
5.6%
2.8% →5.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.79x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
2.29x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.6 pp over 5 years. Driven by net margin improving (2.8% → 5.6%), leverage falling (2.29x → 1.72x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.8% | 0.79 | 2.29 | 5.1% |
| FY2023 | ₹0Cr | ₹0Cr | 3.8% | 0.94 | 2.30 | 8.1% |
| FY2024 | ₹0Cr | ₹0Cr | 8.3% | 0.96 | 2.08 | 16.6% |
| FY2025 | ₹0Cr | ₹0Cr | 8.7% | 0.96 | 1.82 | 15.2% |
| FY2026 | ₹0Cr | ₹0Cr | 5.6% | 0.80 | 1.72 | 7.7% |
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.