DuPont Decomposition
Why does KFINTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.6% = 31.2% × 0.61 × 1.24
Latest: FY2025
Profitability
Net Margin
31.2%
24.1% →31.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.61x
0.60x →0.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.59x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~24%. Driven by net margin improving (24.1% → 31.2%), leverage falling (1.59x → 1.24x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 24.1% | 0.60 | 1.59 | 23.1% |
| FY2023 | ₹0Cr | ₹0Cr | 31.1% | 0.15 | 1.44 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 32.6% | 0.16 | 1.24 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 31.2% | 0.61 | 1.24 | 23.6% |
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.