DuPont Decomposition
Why does KCPSUGIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.4% = 4.3% × 0.39 × 1.44
Latest: FY2026
Profitability
Net Margin
4.3%
1.1% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.39x
0.55x →0.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.83x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.3 pp over 5 years. Driven by net margin improving (1.1% → 4.3%), asset turnover declining (0.55x → 0.39x), leverage falling (1.83x → 1.44x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.1% | 0.55 | 1.83 | 1.1% |
| FY2023 | ₹0Cr | ₹0Cr | 20.1% | 0.46 | 1.68 | 15.6% |
| FY2024 | ₹0Cr | ₹0Cr | 19.1% | 0.52 | 1.52 | 15.1% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 0.50 | 1.37 | 3.2% |
| FY2026 | ₹0Cr | ₹0Cr | 4.3% | 0.39 | 1.44 | 2.4% |
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.