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
16.3% = 13.3% × 1.03 × 1.19
Latest: FY2025
Profitability
Net Margin
13.3%
10.8% →13.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.03x
0.35x →1.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.51x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.7 pp over 3 years. Driven by net margin improving (10.8% → 13.3%), asset turnover improving (0.35x → 1.03x), leverage falling (1.51x → 1.19x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.8% | 0.35 | 1.51 | 5.7% |
| FY2024 | ₹0Cr | ₹0Cr | 12.6% | 0.29 | 1.35 | 4.9% |
| FY2025 | ₹0Cr | ₹0Cr | 13.3% | 1.03 | 1.19 | 16.3% |
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.