DuPont Decomposition
Why does VALIANTORG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.5% = -0.5% × 0.61 × 1.63
Latest: FY2025
Profitability
Net Margin
-0.5%
12.5% →-0.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.61x
0.22x →0.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.63x
1.80x →1.63x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.4 pp over 3 years. Driven by net margin declining (12.5% → -0.5%), asset turnover improving (0.22x → 0.61x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.5% | 0.22 | 1.80 | 4.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -11.4% | 0.14 | 1.71 | -2.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.5% | 0.61 | 1.63 | -0.5% |
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.