DuPont Decomposition
Why does VINATIORGA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.0% = 19.9% × 0.62 × 1.14
Latest: FY2026
Profitability
Net Margin
19.9%
21.5% →19.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
0.75x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.16x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.6 pp over 5 years. Driven by net margin declining (21.5% → 19.9%), asset turnover declining (0.75x → 0.62x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 21.5% | 0.75 | 1.16 | 18.6% |
| FY2023 | ₹0Cr | ₹0Cr | 20.3% | 0.80 | 1.17 | 18.9% |
| FY2024 | ₹0Cr | ₹0Cr | 17.1% | 0.67 | 1.15 | 13.1% |
| FY2025 | ₹0Cr | ₹0Cr | 18.0% | 0.69 | 1.17 | 14.5% |
| FY2026 | ₹0Cr | ₹0Cr | 19.9% | 0.62 | 1.14 | 14.0% |
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.