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%
5.7% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.60x
1.04x →0.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.70x
1.66x →1.70x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.8 pp over 3 years. Driven by net margin improving (5.7% → 6.8%), asset turnover declining (1.04x → 0.60x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.7% | 1.04 | 1.66 | 9.8% |
| FY2024 | ₹0Cr | ₹0Cr | 3.1% | 0.84 | 1.58 | 4.2% |
| 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.