DuPont Decomposition
Why does KNRCON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.8% = 16.2% × 0.33 × 1.63
Latest: FY2026
Profitability
Net Margin
16.2%
11.5% →16.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.33x
0.63x →0.33x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.63x
2.26x →1.63x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.6 pp over 5 years. Driven by net margin improving (11.5% → 16.2%), asset turnover declining (0.63x → 0.33x), leverage falling (2.26x → 1.63x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.5% | 0.63 | 2.26 | 16.4% |
| FY2023 | ₹0Cr | ₹0Cr | 12.1% | 0.87 | 1.56 | 16.5% |
| FY2024 | ₹0Cr | ₹0Cr | 17.6% | 0.76 | 1.63 | 21.9% |
| FY2025 | ₹0Cr | ₹0Cr | 21.1% | 0.67 | 1.57 | 22.1% |
| FY2026 | ₹0Cr | ₹0Cr | 16.2% | 0.33 | 1.63 | 8.8% |
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.