DuPont Decomposition
Why does KOTARISUG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.6% = 3.4% × 0.69 × 1.55
Latest: FY2025
Profitability
Net Margin
3.4%
8.1% →3.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
1.06x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
1.79x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.9 pp over 4 years. Driven by net margin declining (8.1% → 3.4%), asset turnover declining (1.06x → 0.69x), leverage falling (1.79x → 1.55x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.1% | 1.06 | 1.79 | 15.5% |
| FY2023 | ₹0Cr | ₹0Cr | 6.9% | 1.40 | 1.68 | 16.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.9% | 1.04 | 1.73 | 10.6% |
| FY2025 | ₹0Cr | ₹0Cr | 3.4% | 0.69 | 1.55 | 3.6% |
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.