DuPont Decomposition
Why does KRITINUT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.8% = 3.7% × 3.38 × 1.19
Latest: FY2026
Profitability
Net Margin
3.7%
1.6% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.38x
4.47x →3.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.49x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.9 pp over 5 years. Driven by net margin improving (1.6% → 3.7%), asset turnover declining (4.47x → 3.38x), leverage falling (1.49x → 1.19x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.6% | 4.47 | 1.49 | 10.9% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 4.12 | 1.46 | 15.7% |
| FY2024 | ₹0Cr | ₹0Cr | 6.6% | 3.27 | 1.18 | 25.7% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 3.09 | 1.12 | 17.5% |
| FY2026 | ₹0Cr | ₹0Cr | 3.7% | 3.38 | 1.19 | 14.8% |
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.