DuPont Decomposition
Why does ZEEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.9% = 8.2% × 0.60 × 1.19
Latest: FY2025
Profitability
Net Margin
8.2%
0.6% →8.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.60x
0.59x →0.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.28x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.4 pp over 3 years. Driven by net margin improving (0.6% → 8.2%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.6% | 0.59 | 1.28 | 0.5% |
| FY2024 | ₹0Cr | ₹0Cr | 1.6% | 0.64 | 1.24 | 1.3% |
| FY2025 | ₹0Cr | ₹0Cr | 8.2% | 0.60 | 1.19 | 5.9% |
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.