DuPont Decomposition
Why does VIJIFIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.8% = 7.3% × 0.07 × 1.64
Latest: FY2025
Profitability
Net Margin
7.3%
36.1% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.07x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.50x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.0 pp over 4 years. Driven by net margin declining (36.1% → 7.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 36.1% | 0.07 | 1.50 | 3.8% |
| FY2023 | ₹0Cr | ₹0Cr | 20.8% | 0.09 | 1.87 | 3.6% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 0.07 | 2.17 | 1.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 0.07 | 1.64 | 0.8% |
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.