DuPont Decomposition
Why does VETO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.7% = 6.5% × 0.97 × 1.37
Latest: FY2026
Profitability
Net Margin
6.5%
7.5% →6.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
0.86x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.45x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~9%. Driven by asset turnover improving (0.86x → 0.97x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.5% | 0.86 | 1.45 | 9.4% |
| FY2023 | ₹0Cr | ₹0Cr | 7.0% | 0.90 | 1.38 | 8.7% |
| FY2024 | ₹0Cr | ₹0Cr | 6.0% | 0.98 | 1.24 | 7.3% |
| FY2025 | ₹0Cr | ₹0Cr | 7.4% | 0.90 | 1.25 | 8.3% |
| FY2026 | ₹0Cr | ₹0Cr | 6.5% | 0.97 | 1.37 | 8.7% |
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.