DuPont Decomposition
Why does KRISHANA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.6% = 9.9% × 0.84 × 2.70
Latest: FY2025
Profitability
Net Margin
9.9%
8.3% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.55x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.70x
2.22x →2.70x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.3 pp over 3 years. Driven by net margin improving (8.3% → 9.9%), asset turnover improving (0.55x → 0.84x), leverage rising (2.22x → 2.70x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 0.55 | 2.22 | 10.2% |
| FY2024 | ₹0Cr | ₹0Cr | 4.4% | 1.09 | 2.81 | 13.4% |
| FY2025 | ₹0Cr | ₹0Cr | 9.9% | 0.84 | 2.70 | 22.6% |
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.