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
15.9% = 8.7% × 0.96 × 1.90
Latest: FY2025
Profitability
Net Margin
8.7%
5.7% →8.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.28x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.90x
2.30x →1.90x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.2 pp over 3 years. Driven by net margin improving (5.7% → 8.7%), asset turnover improving (0.28x → 0.96x), leverage falling (2.30x → 1.90x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.7% | 0.28 | 2.30 | 3.7% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 0.26 | 2.08 | 4.8% |
| FY2025 | ₹0Cr | ₹0Cr | 8.7% | 0.96 | 1.90 | 15.9% |
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.