DuPont Decomposition
Why does KPITTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
28.8% = 14.4% × 1.16 × 1.73
Latest: FY2025
Profitability
Net Margin
14.4%
11.0% →14.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.16x
0.30x →1.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.73x
2.06x →1.73x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 22.1 pp over 3 years. Driven by net margin improving (11.0% → 14.4%), asset turnover improving (0.30x → 1.16x), leverage falling (2.06x → 1.73x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.0% | 0.30 | 2.06 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 15.0% | 0.25 | 1.34 | 5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 14.4% | 1.16 | 1.73 | 28.8% |
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.