DuPont Decomposition
Why does KABRAEXTRU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.0% = 6.8% × 0.60 × 1.70
Latest: FY2025
Profitability
Net Margin
6.8%
7.6% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.60x
0.70x →0.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.70x
1.73x →1.70x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.2 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.6% | 0.70 | 1.73 | 9.2% |
| FY2023 | ₹0Cr | ₹0Cr | 5.7% | 1.04 | 1.66 | 9.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.6% | 0.84 | 1.58 | 7.5% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 0.60 | 1.70 | 7.0% |
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.