DuPont Decomposition
Why does VIDHIING earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.4% = 11.6% × 0.94 × 1.32
Latest: FY2025
Profitability
Net Margin
11.6%
9.8% →11.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.94x
0.27x →0.94x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
1.32x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.9 pp over 3 years. Driven by net margin improving (9.8% → 11.6%), asset turnover improving (0.27x → 0.94x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.8% | 0.27 | 1.32 | 3.5% |
| FY2024 | ₹0Cr | ₹0Cr | 13.0% | 0.25 | 1.16 | 3.7% |
| FY2025 | ₹0Cr | ₹0Cr | 11.6% | 0.94 | 1.32 | 14.4% |
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.