DuPont Decomposition
Why does VAKRANGEE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.1% = 2.6% × 0.83 × 1.46
Latest: FY2025
Profitability
Net Margin
2.6%
1.3% →2.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.83x
0.17x →0.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
2.41x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.6 pp over 3 years. Driven by net margin improving (1.3% → 2.6%), asset turnover improving (0.17x → 0.83x), leverage falling (2.41x → 1.46x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 0.17 | 2.41 | 0.6% |
| FY2024 | ₹0Cr | ₹0Cr | 4.1% | 0.18 | 1.85 | 1.4% |
| FY2025 | ₹0Cr | ₹0Cr | 2.6% | 0.83 | 1.46 | 3.1% |
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.