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
1.8% = 2.3% × 0.56 × 1.43
Latest: FY2025
Profitability
Net Margin
2.3%
3.4% →2.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.56x
0.85x →0.56x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.43x
1.53x →1.43x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.6 pp over 3 years. Driven by net margin declining (3.4% → 2.3%), asset turnover declining (0.85x → 0.56x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 0.85 | 1.53 | 4.4% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 0.64 | 1.45 | 3.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.3% | 0.56 | 1.43 | 1.8% |
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.