DuPont Decomposition
Why does VESUVIUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.9% = 12.6% × 0.98 × 1.29
Latest: FY2026
Profitability
Net Margin
12.6%
7.9% →12.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
0.26x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.33x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.1 pp over 4 years. Driven by net margin improving (7.9% → 12.6%), asset turnover improving (0.26x → 0.98x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.9% | 0.26 | 1.33 | 2.8% |
| FY2024 | ₹0Cr | ₹0Cr | 13.7% | 0.26 | 1.33 | 4.8% |
| FY2025 | ₹0Cr | ₹0Cr | 11.8% | 0.28 | 1.29 | 4.2% |
| FY2026 | ₹0Cr | ₹0Cr | 12.6% | 0.98 | 1.29 | 15.9% |
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.