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
20.4% = 14.2% × 1.02 × 1.41
Latest: FY2026
Profitability
Net Margin
14.2%
8.4% →14.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.02x
0.99x →1.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.41x
1.56x →1.41x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.5 pp over 5 years. Driven by net margin improving (8.4% → 14.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.4% | 0.99 | 1.56 | 12.9% |
| FY2023 | ₹0Cr | ₹0Cr | 8.8% | 1.09 | 1.42 | 13.7% |
| FY2024 | ₹0Cr | ₹0Cr | 10.2% | 0.95 | 1.50 | 14.4% |
| FY2025 | ₹0Cr | ₹0Cr | 12.9% | 1.00 | 1.50 | 19.3% |
| FY2026 | ₹0Cr | ₹0Cr | 14.2% | 1.02 | 1.41 | 20.4% |
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.