DuPont Decomposition
Why does KOPRAN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.4% = 6.1% × 0.75 × 1.63
Latest: FY2025
Profitability
Net Margin
6.1%
5.4% →6.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.23x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.63x
1.48x →1.63x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.6 pp over 3 years. Driven by asset turnover improving (0.23x → 0.75x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.4% | 0.23 | 1.48 | 1.8% |
| FY2024 | ₹0Cr | ₹0Cr | 10.0% | 0.25 | 1.51 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 0.75 | 1.63 | 7.4% |
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.