DuPont Decomposition
Why does KALYANKJIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.9% = 2.9% × 1.65 × 3.15
Latest: FY2025
Profitability
Net Margin
2.9%
3.1% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.65x
1.31x →1.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.15x
2.95x →3.15x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 3 years. Driven by asset turnover improving (1.31x → 1.65x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 1.31 | 2.95 | 11.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 1.45 | 3.06 | 14.2% |
| FY2025 | ₹0Cr | ₹0Cr | 2.9% | 1.65 | 3.15 | 14.9% |
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.