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
8.8% = 7.3% × 0.92 × 1.30
Latest: FY2026
Profitability
Net Margin
7.3%
5.7% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
1.10x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.38x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~9%. Driven by net margin improving (5.7% → 7.3%), asset turnover declining (1.10x → 0.92x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.7% | 1.10 | 1.38 | 8.7% |
| FY2023 | ₹0Cr | ₹0Cr | 6.3% | 1.19 | 1.39 | 10.4% |
| FY2024 | ₹0Cr | ₹0Cr | 15.3% | 1.05 | 1.33 | 21.2% |
| FY2025 | ₹0Cr | ₹0Cr | 14.6% | 0.95 | 1.28 | 17.8% |
| FY2026 | ₹0Cr | ₹0Cr | 7.3% | 0.92 | 1.30 | 8.8% |
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.