DuPont Decomposition
Why does EKC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.1% = 6.7% × 0.91 × 1.34
Latest: FY2025
Profitability
Net Margin
6.7%
15.7% →6.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
1.31x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.43x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.3 pp over 4 years. Driven by net margin declining (15.7% → 6.7%), asset turnover declining (1.31x → 0.91x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.7% | 1.31 | 1.43 | 29.4% |
| FY2023 | ₹0Cr | ₹0Cr | 6.0% | 0.92 | 1.37 | 7.6% |
| FY2024 | ₹0Cr | ₹0Cr | 8.3% | 0.85 | 1.28 | 9.0% |
| FY2025 | ₹0Cr | ₹0Cr | 6.7% | 0.91 | 1.34 | 8.1% |
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.