DuPont Decomposition
Why does KARMAENG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.6% = 10.8% × 0.21 × 1.15
Latest: FY2026
Profitability
Net Margin
10.8%
-7.7% →10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.21x
0.43x →0.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
2.10x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.6 pp over 5 years. Driven by net margin improving (-7.7% → 10.8%), asset turnover declining (0.43x → 0.21x), leverage falling (2.10x → 1.15x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -7.7% | 0.43 | 2.10 | -7.0% |
| FY2023 | ₹0Cr | ₹0Cr | 46.0% | 0.23 | 1.44 | 15.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.0% | 0.25 | 1.30 | 0.3% |
| FY2025 | ₹0Cr | ₹0Cr | 16.1% | 0.17 | 1.30 | 3.5% |
| FY2026 | ₹0Cr | ₹0Cr | 10.8% | 0.21 | 1.15 | 2.6% |
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.