DuPont Decomposition
Why does VENUSPIPES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.3% = 8.7% × 0.90 × 1.94
Latest: FY2026
Profitability
Net Margin
8.7%
8.3% →8.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.90x
1.55x →0.90x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.94x
1.93x →1.94x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.4 pp over 5 years. Driven by asset turnover declining (1.55x → 0.90x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.3% | 1.55 | 1.93 | 24.6% |
| FY2023 | ₹0Cr | ₹0Cr | 8.1% | 1.08 | 1.57 | 13.7% |
| FY2024 | ₹0Cr | ₹0Cr | 11.0% | 1.04 | 1.87 | 21.2% |
| FY2025 | ₹0Cr | ₹0Cr | 9.7% | 0.95 | 1.90 | 17.5% |
| FY2026 | ₹0Cr | ₹0Cr | 8.7% | 0.90 | 1.94 | 15.3% |
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.