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
14.9% = 12.9% × 0.91 × 1.28
Latest: FY2026
Profitability
Net Margin
12.9%
11.1% →12.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
1.50x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.62x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.1 pp over 5 years. Driven by net margin improving (11.1% → 12.9%), asset turnover declining (1.50x → 0.91x), leverage falling (1.62x → 1.28x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.1% | 1.50 | 1.62 | 27.0% |
| FY2023 | ₹0Cr | ₹0Cr | 9.5% | 1.20 | 1.32 | 15.0% |
| FY2024 | ₹0Cr | ₹0Cr | 12.6% | 0.89 | 1.16 | 13.0% |
| FY2025 | ₹0Cr | ₹0Cr | 11.3% | 0.97 | 1.32 | 14.4% |
| FY2026 | ₹0Cr | ₹0Cr | 12.9% | 0.91 | 1.28 | 14.9% |
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.