DuPont Decomposition
Why does KESORAMIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1232.5% = 2160.7% × 0.32 × 1.80
Latest: FY2025
Profitability
Net Margin
2160.7%
-2.1% →2160.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.32x
1.05x →0.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
6.72x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1247.6 pp over 4 years. Driven by net margin improving (-2.1% → 2160.7%), asset turnover declining (1.05x → 0.32x), leverage falling (6.72x → 1.80x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2.1% | 1.05 | 6.72 | -15.2% |
| FY2023 | ₹0Cr | ₹-0Cr | -5.2% | 1.10 | 7.26 | -41.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -154.8% | 0.07 | 35.61 | -402.2% |
| FY2025 | ₹0Cr | ₹0Cr | 2160.7% | 0.32 | 1.80 | 1232.5% |
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.