DuPont Decomposition
Why does KPRMILL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.2% = 13.6% × 0.93 × 1.20
Latest: FY2026
Profitability
Net Margin
13.6%
18.0% →13.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
0.96x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.53x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.2 pp over 5 years. Driven by net margin declining (18.0% → 13.6%), leverage falling (1.53x → 1.20x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.0% | 0.96 | 1.53 | 26.4% |
| FY2023 | ₹0Cr | ₹0Cr | 13.7% | 1.06 | 1.51 | 22.0% |
| FY2024 | ₹0Cr | ₹0Cr | 13.8% | 0.99 | 1.35 | 18.5% |
| FY2025 | ₹0Cr | ₹0Cr | 13.3% | 1.03 | 1.19 | 16.3% |
| FY2026 | ₹0Cr | ₹0Cr | 13.6% | 0.93 | 1.20 | 15.2% |
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.