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
6.3% = 7.2% × 0.16 × 5.34
Latest: FY2025
Profitability
Net Margin
7.2%
3.6% →7.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.16x
0.07x →0.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.34x
90.14x →5.34x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.5 pp over 2 years. Driven by net margin improving (3.6% → 7.2%), leverage falling (90.14x → 5.34x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.6% | 0.07 | 90.14 | 21.9% |
| FY2025 | ₹0Cr | ₹0Cr | 7.2% | 0.16 | 5.34 | 6.3% |
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.