DuPont Decomposition
Why does KENNAMET earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.8% = 8.8% × 1.21 × 1.29
Latest: FY2026
Profitability
Net Margin
8.8%
11.6% →8.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
1.19x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.28x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.9 pp over 4 years. Driven by net margin declining (11.6% → 8.8%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.6% | 1.19 | 1.28 | 17.6% |
| FY2024 | ₹0Cr | ₹0Cr | 8.2% | 1.26 | 1.24 | 12.7% |
| FY2025 | ₹0Cr | ₹0Cr | 10.1% | 1.19 | 1.26 | 15.1% |
| FY2026 | ₹0Cr | ₹0Cr | 8.8% | 1.21 | 1.29 | 13.8% |
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.