DuPont Decomposition
Why does KIRLFER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.6% = 4.5% × 1.02 × 1.85
Latest: FY2025
Profitability
Net Margin
4.5%
9.4% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.02x
0.69x →1.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
2.02x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.6 pp over 4 years. Driven by net margin declining (9.4% → 4.5%), asset turnover improving (0.69x → 1.02x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.4% | 0.69 | 2.02 | 13.2% |
| FY2023 | ₹0Cr | ₹0Cr | 7.5% | 1.06 | 1.82 | 14.5% |
| FY2024 | ₹0Cr | ₹0Cr | 4.9% | 1.02 | 1.82 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 1.02 | 1.85 | 8.6% |
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.