DuPont Decomposition
Why does KOTYARK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.0% = 5.0% × 1.22 × 1.64
Latest: FY2025
Profitability
Net Margin
5.0%
5.5% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.22x
4.95x →1.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.18x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 22.4 pp over 4 years. Driven by asset turnover declining (4.95x → 1.22x), leverage rising (1.18x → 1.64x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.5% | 4.95 | 1.18 | 32.4% |
| FY2023 | ₹0Cr | ₹0Cr | 11.1% | 1.13 | 1.50 | 18.7% |
| FY2024 | ₹0Cr | ₹0Cr | 8.2% | 1.22 | 1.54 | 15.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 1.22 | 1.64 | 10.0% |
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.