DuPont Decomposition
Why does KRISHNADEF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.9% = 11.7% × 1.16 × 1.24
Latest: FY2025
Profitability
Net Margin
11.7%
5.3% →11.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.16x
0.69x →1.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
2.81x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.7 pp over 4 years. Driven by net margin improving (5.2% → 11.7%), asset turnover improving (0.69x → 1.16x), leverage falling (2.81x → 1.24x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.3% | 0.69 | 2.81 | 10.2% |
| FY2023 | ₹0Cr | ₹0Cr | 8.5% | 0.74 | 2.07 | 13.0% |
| FY2024 | ₹0Cr | ₹0Cr | 9.4% | 0.78 | 1.25 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 11.7% | 1.16 | 1.24 | 16.9% |
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.