DuPont Decomposition
Why does KIRIINDUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.2% = 35.8% × 0.16 × 1.46
Latest: FY2025
Profitability
Net Margin
35.8%
26.4% →35.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.16x
0.48x →0.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
1.19x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.0 pp over 4 years. Driven by net margin improving (26.4% → 35.8%), asset turnover declining (0.48x → 0.16x), leverage rising (1.19x → 1.46x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 26.4% | 0.48 | 1.19 | 15.1% |
| FY2023 | ₹0Cr | ₹0Cr | 11.6% | 0.29 | 1.20 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 23.9% | 0.21 | 1.21 | 6.0% |
| FY2025 | ₹0Cr | ₹0Cr | 35.8% | 0.16 | 1.46 | 8.2% |
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.