DuPont Decomposition
Why does KRSNAA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.3% = 13.1% × 0.42 × 1.86
Latest: FY2026
Profitability
Net Margin
13.1%
15.0% →13.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.42x
0.52x →0.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.86x
1.28x →1.86x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~10%. Driven by net margin declining (15.0% → 13.1%), asset turnover declining (0.52x → 0.42x), leverage rising (1.28x → 1.86x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.0% | 0.52 | 1.28 | 10.0% |
| FY2023 | ₹0Cr | ₹0Cr | 12.8% | 0.54 | 1.23 | 8.4% |
| FY2024 | ₹0Cr | ₹0Cr | 9.2% | 0.53 | 1.45 | 7.0% |
| FY2025 | ₹0Cr | ₹0Cr | 10.8% | 0.56 | 1.45 | 8.8% |
| FY2026 | ₹0Cr | ₹0Cr | 13.1% | 0.42 | 1.86 | 10.3% |
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.