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
3.5% = 2.5% × 0.77 × 1.79
Latest: FY2026
Profitability
Net Margin
2.5%
10.6% →2.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.99x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.79x
2.28x →1.79x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.2 pp over 5 years. Driven by net margin declining (10.6% → 2.5%), asset turnover declining (0.99x → 0.77x), leverage falling (2.28x → 1.79x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.6% | 0.99 | 2.28 | 23.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -4.2% | 1.23 | 2.19 | -11.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1.0% | 0.86 | 1.92 | 1.6% |
| FY2025 | ₹0Cr | ₹0Cr | 2.3% | 0.89 | 1.82 | 3.7% |
| FY2026 | ₹0Cr | ₹0Cr | 2.5% | 0.77 | 1.79 | 3.5% |
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.