DuPont Decomposition
Why does KIRLOSBROS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.2% = 8.2% × 1.03 × 1.79
Latest: FY2026
Profitability
Net Margin
8.2%
3.1% →8.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.03x
1.05x →1.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.79x
2.43x →1.79x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.2 pp over 5 years. Driven by net margin improving (3.1% → 8.2%), leverage falling (2.43x → 1.79x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.1% | 1.05 | 2.43 | 8.0% |
| FY2023 | ₹0Cr | ₹0Cr | 6.4% | 1.22 | 2.15 | 16.7% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 1.18 | 1.93 | 20.3% |
| FY2025 | ₹0Cr | ₹0Cr | 9.2% | 1.23 | 1.75 | 19.8% |
| FY2026 | ₹0Cr | ₹0Cr | 8.2% | 1.03 | 1.79 | 15.2% |
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.