DuPont Decomposition
Why does KSCL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.8% = 21.2% × 0.51 × 1.57
Latest: FY2026
Profitability
Net Margin
21.2%
22.0% →21.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.51x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.57x
1.47x →1.57x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~17%.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 22.0% | 0.51 | 1.47 | 16.6% |
| FY2023 | ₹0Cr | ₹0Cr | 25.4% | 0.52 | 1.50 | 19.9% |
| FY2024 | ₹0Cr | ₹0Cr | 26.1% | 0.56 | 1.66 | 24.2% |
| FY2025 | ₹0Cr | ₹0Cr | 23.4% | 0.45 | 1.77 | 18.8% |
| FY2026 | ₹0Cr | ₹0Cr | 21.2% | 0.51 | 1.57 | 16.8% |
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.