DuPont Decomposition
Why does KSB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.1% = 10.1% × 0.96 × 1.66
Latest: FY2026
Profitability
Net Margin
10.1%
10.1% →10.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.99x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.66x
1.60x →1.66x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~16%.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.1% | 0.99 | 1.60 | 16.0% |
| FY2024 | ₹0Cr | ₹0Cr | 9.3% | 1.08 | 1.59 | 16.0% |
| FY2025 | ₹0Cr | ₹0Cr | 9.8% | 1.07 | 1.58 | 16.7% |
| FY2026 | ₹0Cr | ₹0Cr | 10.1% | 0.96 | 1.66 | 16.1% |
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.