DuPont Decomposition
Why does KPIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.4% = 3.8% × 0.98 × 3.56
Latest: FY2026
Profitability
Net Margin
3.8%
3.7% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
0.85x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.56x
4.02x →3.56x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~13%. Driven by asset turnover improving (0.85x → 0.98x), leverage falling (4.02x → 3.56x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.7% | 0.85 | 4.02 | 12.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.7% | 0.83 | 4.15 | 9.3% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 0.88 | 4.29 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 2.6% | 0.87 | 3.93 | 9.0% |
| FY2026 | ₹0Cr | ₹0Cr | 3.8% | 0.98 | 3.56 | 13.4% |
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.