DuPont Decomposition
Why does KINGFA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.0% = 8.8% × 1.51 × 1.59
Latest: FY2025
Profitability
Net Margin
8.8%
2.9% →8.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.51x
1.19x →1.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
2.29x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.0 pp over 4 years. Driven by net margin improving (2.9% → 8.8%), asset turnover improving (1.19x → 1.51x), leverage falling (2.29x → 1.59x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.9% | 1.19 | 2.29 | 8.0% |
| FY2023 | ₹0Cr | ₹0Cr | 5.8% | 1.39 | 2.17 | 17.5% |
| FY2024 | ₹0Cr | ₹0Cr | 8.2% | 1.50 | 1.69 | 20.8% |
| FY2025 | ₹0Cr | ₹0Cr | 8.8% | 1.51 | 1.59 | 21.0% |
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.