DuPont Decomposition
Why does JINDALSTEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.6% = 6.3% × 0.55 × 1.92
Latest: FY2026
Profitability
Net Margin
6.3%
10.6% →6.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.55x
0.83x →0.55x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.92x
2.15x →1.92x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.4 pp over 5 years. Driven by net margin declining (10.6% → 6.3%), asset turnover declining (0.83x → 0.55x), leverage falling (2.15x → 1.92x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.6% | 0.83 | 2.15 | 19.0% |
| FY2023 | ₹0Cr | ₹0Cr | 6.0% | 0.96 | 1.79 | 10.3% |
| FY2024 | ₹0Cr | ₹0Cr | 14.2% | 0.53 | 1.78 | 13.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.6% | 0.58 | 1.82 | 6.0% |
| FY2026 | ₹0Cr | ₹0Cr | 6.3% | 0.55 | 1.92 | 6.6% |
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.