DuPont Decomposition
Why does VASCONEQ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.3% = 5.2% × 0.40 × 2.06
Latest: FY2026
Profitability
Net Margin
5.2%
5.4% →5.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.40x
0.44x →0.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.06x
1.84x →2.06x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~4%. Driven by leverage rising (1.84x → 2.06x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.4% | 0.44 | 1.84 | 4.3% |
| FY2023 | ₹0Cr | ₹0Cr | 9.8% | 0.61 | 1.81 | 10.7% |
| FY2024 | ₹0Cr | ₹0Cr | 9.0% | 0.40 | 1.90 | 6.8% |
| FY2025 | ₹0Cr | ₹0Cr | 12.1% | 0.51 | 1.95 | 11.9% |
| FY2026 | ₹0Cr | ₹0Cr | 5.2% | 0.40 | 2.06 | 4.3% |
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.