DuPont Decomposition
Why does KILITCH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.8% = 12.8% × 0.51 × 1.64
Latest: FY2026
Profitability
Net Margin
12.8%
6.5% →12.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.54x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.51x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.5 pp over 5 years. Driven by net margin improving (6.5% → 12.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.5% | 0.54 | 1.51 | 5.3% |
| FY2023 | ₹0Cr | ₹0Cr | 7.5% | 0.63 | 1.45 | 6.9% |
| FY2024 | ₹0Cr | ₹0Cr | 9.5% | 0.64 | 1.36 | 8.3% |
| FY2025 | ₹0Cr | ₹0Cr | 13.5% | 0.63 | 1.55 | 13.2% |
| FY2026 | ₹0Cr | ₹0Cr | 12.8% | 0.51 | 1.64 | 10.8% |
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.