DuPont Decomposition
Why does KIRLPNU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.0% = 13.0% × 0.99 × 1.49
Latest: FY2025
Profitability
Net Margin
13.0%
8.4% →13.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
0.99x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
1.56x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.1 pp over 4 years. Driven by net margin improving (8.4% → 13.0%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.4% | 0.99 | 1.56 | 12.9% |
| FY2023 | ₹0Cr | ₹0Cr | 9.0% | 0.32 | 1.42 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 12.3% | 0.35 | 1.50 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 13.0% | 0.99 | 1.49 | 19.0% |
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.