DuPont Decomposition
Why does KALYANIFRG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 3.5% × 1.02 × 2.57
Latest: FY2025
Profitability
Net Margin
3.5%
1.3% →3.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.02x
1.34x →1.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.57x
1.78x →2.57x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.2 pp over 4 years. Driven by net margin improving (1.3% → 3.5%), asset turnover declining (1.34x → 1.02x), leverage rising (1.78x → 2.57x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.3% | 1.34 | 1.78 | 3.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.1% | 1.47 | 2.32 | -0.2% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 1.15 | 2.50 | 5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 3.5% | 1.02 | 2.57 | 9.3% |
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.