DuPont Decomposition
Why does ZUARIIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.0% = 10.3% × 0.15 × 1.98
Latest: FY2026
Profitability
Net Margin
10.3%
-5.0% →10.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.15x
0.12x →0.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.98x
2.10x →1.98x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.2 pp over 5 years. Driven by net margin improving (-5.0% → 10.3%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -5.0% | 0.12 | 2.10 | -1.2% |
| FY2023 | ₹0Cr | ₹0Cr | 32.5% | 0.16 | 2.42 | 12.9% |
| FY2024 | ₹0Cr | ₹0Cr | 85.3% | 0.11 | 1.91 | 18.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -9.6% | 0.11 | 1.77 | -1.9% |
| FY2026 | ₹0Cr | ₹0Cr | 10.3% | 0.15 | 1.98 | 3.0% |
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.