DuPont Decomposition
Why does KELLTONTEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.9% = 7.3% × 1.39 × 1.47
Latest: FY2025
Profitability
Net Margin
7.3%
-72.7% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.39x
0.41x →1.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.47x
1.60x →1.47x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 62.2 pp over 3 years. Driven by net margin improving (-72.7% → 7.3%), asset turnover improving (0.41x → 1.39x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -72.7% | 0.41 | 1.60 | -47.3% |
| FY2024 | ₹0Cr | ₹0Cr | 9.7% | 0.38 | 1.49 | 5.4% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 1.39 | 1.47 | 14.9% |
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.