DuPont Decomposition
Why does KAUSHALYA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.8% = 4042.1% × 0.00 × 1.02
Latest: FY2025
Profitability
Net Margin
4042.1%
311.1% →4042.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.00x
0.00x →0.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.02x
1.61x →1.02x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.7 pp over 4 years. Driven by net margin improving (311.1% → 4042.1%), leverage falling (1.61x → 1.02x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 311.1% | 0.00 | 1.61 | 1.0% |
| FY2023 | ₹0Cr | ₹0Cr | 12426.5% | 0.00 | 1.41 | 27.1% |
| FY2024 | ₹0Cr | ₹0Cr | 10466.9% | 0.00 | 1.01 | 20.6% |
| FY2025 | ₹0Cr | ₹0Cr | 4042.1% | 0.00 | 1.02 | 6.8% |
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.