DuPont Decomposition
Why does JKIPL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.2% = 4.8% × 2.12 × 2.08
Latest: FY2025
Profitability
Net Margin
4.8%
4.4% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.12x
4.65x →2.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.08x
2.02x →2.08x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.1 pp over 3 years. Driven by asset turnover declining (4.65x → 2.12x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.4% | 4.65 | 2.02 | 41.3% |
| FY2024 | ₹0Cr | ₹0Cr | 7.9% | 2.17 | 2.54 | 43.3% |
| FY2025 | ₹0Cr | ₹0Cr | 4.8% | 2.12 | 2.08 | 21.2% |
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.