DuPont Decomposition
Why does STEELXIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.7% = 2.3% × 0.89 × 1.82
Latest: FY2025
Profitability
Net Margin
2.3%
-3.1% →2.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
1.23x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.82x
2.19x →1.82x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.9 pp over 3 years. Driven by net margin improving (-3.1% → 2.3%), asset turnover declining (1.23x → 0.89x), leverage falling (2.19x → 1.82x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -3.1% | 1.23 | 2.19 | -8.2% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 0.86 | 1.92 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.3% | 0.89 | 1.82 | 3.7% |
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.