DuPont Decomposition
Why does KIRLOSIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.6% = 2.3% × 0.59 × 1.89
Latest: FY2026
Profitability
Net Margin
2.3%
5.2% →2.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.55x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.89x
2.91x →1.89x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.7 pp over 5 years. Driven by net margin declining (5.2% → 2.3%), leverage falling (2.91x → 1.89x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.2% | 0.55 | 2.91 | 8.3% |
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 0.85 | 2.32 | 6.7% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 0.64 | 1.96 | 4.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.3% | 0.57 | 1.85 | 2.4% |
| FY2026 | ₹0Cr | ₹0Cr | 2.3% | 0.59 | 1.89 | 2.6% |
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.