DuPont Decomposition
Why does KANPRPLA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.4% = 1.8% × 1.28 × 2.37
Latest: FY2025
Profitability
Net Margin
1.8%
6.6% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.28x
0.27x →1.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.37x
2.26x →2.37x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.4 pp over 3 years. Driven by net margin declining (6.6% → 1.8%), asset turnover improving (0.27x → 1.28x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.6% | 0.27 | 2.26 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.1% | 0.32 | 2.65 | 1.8% |
| FY2025 | ₹0Cr | ₹0Cr | 1.8% | 1.28 | 2.37 | 5.4% |
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.