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
5.9% = 6.8% × 0.48 × 1.81
Latest: FY2025
Profitability
Net Margin
6.8%
3.4% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.20x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
1.79x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.7 pp over 3 years. Driven by net margin improving (3.4% → 6.8%), asset turnover improving (0.20x → 0.48x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 0.20 | 1.79 | 1.2% |
| FY2024 | ₹0Cr | ₹0Cr | 9.3% | 0.19 | 1.58 | 2.8% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 0.48 | 1.81 | 5.9% |
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.