DuPont Decomposition
Why does KSHINTL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.6% = 3.5% × 2.35 × 1.64
Latest: FY2026
Profitability
Net Margin
3.5%
3.4% →3.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.35x
2.12x →2.35x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
2.27x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.9 pp over 5 years. Driven by asset turnover improving (2.12x → 2.35x), leverage falling (2.27x → 1.64x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.4% | 2.12 | 2.27 | 16.5% |
| FY2023 | ₹0Cr | ₹0Cr | 2.8% | 2.69 | 1.85 | 13.7% |
| FY2024 | ₹0Cr | ₹0Cr | 2.9% | 2.66 | 2.09 | 16.2% |
| FY2025 | ₹0Cr | ₹0Cr | 3.5% | 2.59 | 2.50 | 22.8% |
| FY2026 | ₹0Cr | ₹0Cr | 3.5% | 2.35 | 1.64 | 13.6% |
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.