DuPont Decomposition
Why does KTKBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.9% = 29.0% × 0.03 × 9.78
Latest: FY2026
Profitability
Net Margin
29.0%
14.8% →29.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.03x
0.04x →0.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
9.78x
12.91x →9.78x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.8 pp over 5 years. Driven by net margin improving (14.8% → 29.0%), leverage falling (12.91x → 9.78x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.8% | 0.04 | 12.91 | 7.2% |
| FY2023 | ₹0Cr | ₹0Cr | 28.2% | 0.04 | 12.06 | 14.4% |
| FY2024 | ₹0Cr | ₹0Cr | 28.3% | 0.04 | 10.70 | 12.1% |
| FY2025 | ₹0Cr | ₹0Cr | 27.8% | 0.04 | 10.01 | 10.5% |
| FY2026 | ₹0Cr | ₹0Cr | 29.0% | 0.03 | 9.78 | 9.9% |
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.