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
-1.9% = -9.6% × 0.11 × 1.77
Latest: FY2025
Profitability
Net Margin
-9.6%
32.5% →-9.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.16x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.77x
2.43x →1.77x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.8 pp over 3 years. Driven by net margin declining (32.5% → -9.6%), leverage falling (2.43x → 1.77x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 32.5% | 0.16 | 2.43 | 13.0% |
| FY2024 | ₹0Cr | ₹0Cr | 85.3% | 0.11 | 1.91 | 18.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -9.6% | 0.11 | 1.77 | -1.9% |
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.