DuPont Decomposition
Why does JYOTISTRUC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.8% = 7.5% × 0.26 × 6.16
Latest: FY2026
Profitability
Net Margin
7.5%
-969.0% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.00x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
6.16x
14.44x →6.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 39.8 pp over 4 years. Driven by net margin improving (-969.0% → 7.5%), asset turnover improving (0.00x → 0.26x), leverage falling (14.44x → 6.16x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -969.0% | 0.00 | 14.44 | -28.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.8% | 0.10 | 90.14 | -16.1% |
| FY2025 | ₹0Cr | ₹0Cr | 7.1% | 0.17 | 5.34 | 6.3% |
| FY2026 | ₹0Cr | ₹0Cr | 7.5% | 0.26 | 6.16 | 11.8% |
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.