DuPont Decomposition
Why does JINDWORLD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.6% = 3.3% × 1.26 × 2.27
Latest: FY2025
Profitability
Net Margin
3.3%
5.7% →3.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.26x
1.22x →1.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.27x
2.58x →2.27x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.2 pp over 3 years. Driven by net margin declining (5.7% → 3.3%), leverage falling (2.58x → 2.27x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.7% | 1.22 | 2.58 | 17.8% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.04 | 2.42 | 10.5% |
| FY2025 | ₹0Cr | ₹0Cr | 3.3% | 1.26 | 2.27 | 9.6% |
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.