DuPont Decomposition
Why does VINDHYATEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.2% = 6.1% × 0.43 × 1.99
Latest: FY2026
Profitability
Net Margin
6.1%
14.7% →6.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.43x
0.26x →0.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.99x
1.56x →1.99x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~5%. Driven by net margin declining (14.7% → 6.1%), asset turnover improving (0.26x → 0.43x), leverage rising (1.56x → 1.99x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.7% | 0.26 | 1.56 | 6.0% |
| FY2023 | ₹0Cr | ₹0Cr | 6.4% | 0.48 | 1.78 | 5.4% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 0.60 | 1.71 | 7.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 0.52 | 1.89 | 5.0% |
| FY2026 | ₹0Cr | ₹0Cr | 6.1% | 0.43 | 1.99 | 5.2% |
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.