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
22.8% = 3.8% × 2.42 × 2.50
Latest: FY2025
Profitability
Net Margin
3.8%
3.4% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.42x
2.12x →2.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.50x
2.27x →2.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.3 pp over 4 years. Driven by asset turnover improving (2.12x → 2.42x), leverage rising (2.27x → 2.50x).
Historical Decomposition
Last 4 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 | 3.8% | 2.42 | 2.50 | 22.8% |
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.