DuPont Decomposition
Why does VIJAYA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.9% = 21.0% × 0.53 × 1.59
Latest: FY2025
Profitability
Net Margin
21.0%
22.9% →21.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.53x
0.14x →0.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
1.57x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.8 pp over 3 years. Driven by net margin declining (22.9% → 21.0%), asset turnover improving (0.14x → 0.53x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 22.9% | 0.14 | 1.57 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 21.7% | 0.16 | 1.50 | 5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 21.0% | 0.53 | 1.59 | 17.9% |
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.