DuPont Decomposition
Why does KANSAINER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.9% = 14.7% × 0.95 × 1.28
Latest: FY2025
Profitability
Net Margin
14.7%
5.5% →14.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
0.27x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.39x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.7 pp over 3 years. Driven by net margin improving (5.5% → 14.7%), asset turnover improving (0.27x → 0.95x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 0.27 | 1.39 | 2.1% |
| FY2024 | ₹0Cr | ₹0Cr | 6.5% | 0.24 | 1.33 | 2.0% |
| FY2025 | ₹0Cr | ₹0Cr | 14.7% | 0.95 | 1.28 | 17.9% |
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.