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
4.8% = 3.8% × 0.75 × 1.71
Latest: FY2026
Profitability
Net Margin
3.8%
12.9% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.78x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.71x
1.43x →1.71x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.5 pp over 5 years. Driven by net margin declining (12.9% → 3.8%), leverage rising (1.43x → 1.71x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.9% | 0.78 | 1.43 | 14.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.0% | 0.84 | 1.48 | 6.2% |
| FY2024 | ₹0Cr | ₹0Cr | 8.3% | 0.83 | 1.51 | 10.4% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 0.75 | 1.63 | 7.4% |
| FY2026 | ₹0Cr | ₹0Cr | 3.8% | 0.75 | 1.71 | 4.8% |
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.