DuPont Decomposition
Why does JTLIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.1% = 5.2% × 1.43 × 1.10
Latest: FY2025
Profitability
Net Margin
5.2%
4.5% →5.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.43x
3.99x →1.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.72x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 22.8 pp over 4 years. Driven by asset turnover declining (3.99x → 1.43x), leverage falling (1.72x → 1.10x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.5% | 3.99 | 1.72 | 30.9% |
| FY2023 | ₹0Cr | ₹0Cr | 5.8% | 2.75 | 1.38 | 22.1% |
| FY2024 | ₹0Cr | ₹0Cr | 6.3% | 0.55 | 1.09 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 5.2% | 1.43 | 1.10 | 8.1% |
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.