DuPont Decomposition
Why does KUANTUM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.5% = 10.5% × 0.52 × 1.74
Latest: FY2025
Profitability
Net Margin
10.5%
1.6% →10.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.52x
0.49x →0.52x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.74x
2.02x →1.74x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.9 pp over 4 years. Driven by net margin improving (1.6% → 10.5%), leverage falling (2.02x → 1.74x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.6% | 0.49 | 2.02 | 1.6% |
| FY2023 | ₹0Cr | ₹0Cr | 10.4% | 0.77 | 1.75 | 14.1% |
| FY2024 | ₹0Cr | ₹0Cr | 15.2% | 0.64 | 1.68 | 16.4% |
| FY2025 | ₹0Cr | ₹0Cr | 10.5% | 0.52 | 1.74 | 9.5% |
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.