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
13.3% = 13.5% × 0.63 × 1.56
Latest: FY2025
Profitability
Net Margin
13.5%
11.8% →13.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.63x
0.17x →0.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.56x
1.29x →1.56x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.7 pp over 3 years. Driven by net margin improving (11.8% → 13.5%), asset turnover improving (0.17x → 0.63x), leverage rising (1.29x → 1.56x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.8% | 0.17 | 1.29 | 2.6% |
| FY2024 | ₹0Cr | ₹0Cr | 8.2% | 0.19 | 1.36 | 2.1% |
| FY2025 | ₹0Cr | ₹0Cr | 13.5% | 0.63 | 1.56 | 13.3% |
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.