DuPont Decomposition
Why does KRBL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.1% = 8.5% × 0.90 × 1.19
Latest: FY2025
Profitability
Net Margin
8.5%
9.2% →8.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.90x
0.23x →0.90x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.19x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.6 pp over 3 years. Driven by asset turnover improving (0.23x → 0.90x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.2% | 0.23 | 1.19 | 2.5% |
| FY2024 | ₹0Cr | ₹0Cr | 8.7% | 0.22 | 1.22 | 2.4% |
| FY2025 | ₹0Cr | ₹0Cr | 8.5% | 0.90 | 1.19 | 9.1% |
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.