DuPont Decomposition
Why does KRITIKA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.1% = 0.9% × 3.93 × 1.75
Latest: FY2026
Profitability
Net Margin
0.9%
1.7% →0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.93x
1.94x →3.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.75x
1.79x →1.75x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~6%. Driven by asset turnover improving (1.94x → 3.93x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.7% | 1.94 | 1.79 | 5.8% |
| FY2023 | ₹0Cr | ₹0Cr | 2.2% | 2.33 | 1.60 | 8.1% |
| FY2024 | ₹0Cr | ₹0Cr | 2.5% | 2.77 | 1.81 | 12.3% |
| FY2025 | ₹0Cr | ₹0Cr | 1.4% | 4.15 | 1.90 | 10.7% |
| FY2026 | ₹0Cr | ₹0Cr | 0.9% | 3.93 | 1.75 | 6.1% |
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.