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
19.8% = 9.4% × 1.21 × 1.74
Latest: FY2025
Profitability
Net Margin
9.4%
8.9% →9.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.21x
0.37x →1.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.74x
2.15x →1.74x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.6 pp over 3 years. Driven by asset turnover improving (0.37x → 1.21x), leverage falling (2.15x → 1.74x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.9% | 0.37 | 2.15 | 7.2% |
| FY2024 | ₹0Cr | ₹0Cr | 14.3% | 0.35 | 1.76 | 8.9% |
| FY2025 | ₹0Cr | ₹0Cr | 9.4% | 1.21 | 1.74 | 19.8% |
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.