DuPont Decomposition
Why does VIKASECO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.3% = 4.5% × 0.74 × 1.30
Latest: FY2025
Profitability
Net Margin
4.5%
0.6% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.74x
0.66x →0.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.30x
1.51x →1.30x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.7 pp over 4 years. Driven by net margin improving (0.6% → 4.5%), leverage falling (1.51x → 1.30x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.6% | 0.66 | 1.51 | 0.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.4% | 1.15 | 1.44 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 0.58 | 1.18 | 1.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 0.74 | 1.30 | 4.3% |
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.