DuPont Decomposition
Why does JSWINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.0% = 28.4% × 0.26 × 1.87
Latest: FY2026
Profitability
Net Margin
28.4%
14.6% →28.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.24x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
2.88x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.0 pp over 5 years. Driven by net margin improving (14.6% → 28.4%), leverage falling (2.88x → 1.87x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.6% | 0.24 | 2.88 | 10.0% |
| FY2023 | ₹0Cr | ₹0Cr | 23.4% | 0.33 | 2.37 | 18.5% |
| FY2024 | ₹0Cr | ₹0Cr | 30.7% | 0.27 | 1.72 | 14.4% |
| FY2025 | ₹0Cr | ₹0Cr | 33.6% | 0.26 | 1.75 | 15.5% |
| FY2026 | ₹0Cr | ₹0Cr | 28.4% | 0.26 | 1.87 | 14.0% |
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.