DuPont Decomposition
Why does KALAMANDIR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.2% = 8.5% × 0.89 × 1.47
Latest: FY2026
Profitability
Net Margin
8.5%
4.8% →8.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
1.08x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.47x
3.34x →1.47x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.0 pp over 5 years. Driven by net margin improving (4.8% → 8.5%), asset turnover declining (1.08x → 0.89x), leverage falling (3.34x → 1.47x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 1.08 | 3.34 | 17.2% |
| FY2023 | ₹0Cr | ₹0Cr | 7.2% | 1.11 | 3.07 | 24.6% |
| FY2024 | ₹0Cr | ₹0Cr | 7.3% | 0.84 | 1.54 | 9.5% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 0.89 | 1.45 | 7.5% |
| FY2026 | ₹0Cr | ₹0Cr | 8.5% | 0.89 | 1.47 | 11.2% |
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.