DuPont Decomposition
Why does JSWENERGY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.7% = 17.0% × 0.13 × 3.09
Latest: FY2025
Profitability
Net Margin
17.0%
10.6% →17.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.13x
0.05x →0.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.09x
2.62x →3.09x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.2 pp over 3 years. Driven by net margin improving (10.6% → 17.0%), leverage rising (2.62x → 3.09x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.6% | 0.05 | 2.62 | 1.5% |
| FY2024 | ₹0Cr | ₹0Cr | 12.5% | 0.05 | 2.80 | 1.7% |
| FY2025 | ₹0Cr | ₹0Cr | 17.0% | 0.13 | 3.09 | 6.7% |
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.