DuPont Decomposition
Why does KICL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.8% = 119.3% × 0.01 × 1.07
Latest: FY2025
Profitability
Net Margin
119.3%
186.3% →119.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.01x →0.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.07x
1.02x →1.07x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by net margin declining (186.2% → 119.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 186.3% | 0.01 | 1.02 | 1.1% |
| FY2023 | ₹0Cr | ₹0Cr | 104.4% | 0.01 | 1.03 | 1.0% |
| FY2024 | ₹0Cr | ₹0Cr | 104.9% | 0.01 | 1.06 | 0.8% |
| FY2025 | ₹0Cr | ₹0Cr | 119.3% | 0.01 | 1.07 | 0.8% |
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.