DuPont Decomposition
Why does VIMTALABS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.0% = 19.0% × 0.72 × 1.23
Latest: FY2026
Profitability
Net Margin
19.0%
15.0% →19.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.90x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.31x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~17%. Driven by net margin improving (15.0% → 19.0%), asset turnover declining (0.90x → 0.72x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.0% | 0.90 | 1.31 | 17.7% |
| FY2023 | ₹0Cr | ₹0Cr | 15.3% | 0.87 | 1.29 | 17.1% |
| FY2024 | ₹0Cr | ₹0Cr | 14.2% | 0.73 | 1.26 | 13.1% |
| FY2025 | ₹0Cr | ₹0Cr | 19.6% | 0.74 | 1.23 | 17.8% |
| FY2026 | ₹0Cr | ₹0Cr | 19.0% | 0.72 | 1.23 | 17.0% |
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.