DuPont Decomposition
Why does KAJARIACER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.5% = 6.4% × 1.23 × 1.34
Latest: FY2025
Profitability
Net Margin
6.4%
9.2% →6.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.23x
0.36x →1.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.43x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.7 pp over 3 years. Driven by net margin declining (9.2% → 6.4%), asset turnover improving (0.36x → 1.23x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.2% | 0.36 | 1.43 | 4.8% |
| FY2024 | ₹0Cr | ₹0Cr | 8.4% | 0.35 | 1.35 | 4.0% |
| FY2025 | ₹0Cr | ₹0Cr | 6.4% | 1.23 | 1.34 | 10.5% |
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.