DuPont Decomposition
Why does KHANDSE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.8% = -8.4% × 0.22 × 1.50
Latest: FY2025
Profitability
Net Margin
-8.4%
1.9% →-8.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.13x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.50x
2.35x →1.50x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.4 pp over 4 years. Driven by net margin declining (1.9% → -8.4%), leverage falling (2.35x → 1.50x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.9% | 0.13 | 2.35 | 0.6% |
| FY2023 | ₹0Cr | ₹0Cr | 7.1% | 0.14 | 1.48 | 1.5% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 0.18 | 1.60 | 0.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -8.4% | 0.22 | 1.50 | -2.8% |
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.