DuPont Decomposition
Why does KALPATARU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-10.4% = -6.2% × 0.12 × 14.00
Latest: FY2024
Profitability
Net Margin
-6.2%
-15.2% →-6.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.12x
0.06x →0.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
14.00x
9.33x →14.00x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.8 pp over 3 years. Driven by net margin improving (-15.2% → -6.2%), leverage rising (9.33x → 14.00x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -15.2% | 0.06 | 9.33 | -8.7% |
| FY2023 | ₹0Cr | ₹-0Cr | -5.9% | 0.27 | 10.44 | -16.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -6.2% | 0.12 | 14.00 | -10.4% |
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.