DuPont Decomposition
Why does JINDRILL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.6% = 26.1% × 0.29 × 1.78
Latest: FY2025
Profitability
Net Margin
26.1%
18.9% →26.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.27x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.78x
1.47x →1.78x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.2 pp over 3 years. Driven by net margin improving (18.9% → 26.1%), leverage rising (1.47x → 1.78x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 18.9% | 0.27 | 1.47 | 7.4% |
| FY2024 | ₹0Cr | ₹0Cr | 8.3% | 0.30 | 1.53 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 26.1% | 0.29 | 1.78 | 13.6% |
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.