DuPont Decomposition
Why does VIPCLOTHNG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.0% = 3.9% × 0.77 × 1.69
Latest: FY2026
Profitability
Net Margin
3.9%
-1.2% →3.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.63x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.69x
2.13x →1.69x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.7 pp over 5 years. Driven by net margin improving (-1.2% → 3.9%), asset turnover improving (0.63x → 0.77x), leverage falling (2.13x → 1.69x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -1.2% | 0.63 | 2.13 | -1.7% |
| FY2023 | ₹0Cr | ₹0Cr | 3.3% | 0.70 | 1.89 | 4.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -7.0% | 0.67 | 1.96 | -9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 2.3% | 0.72 | 1.78 | 3.0% |
| FY2026 | ₹0Cr | ₹0Cr | 3.9% | 0.77 | 1.69 | 5.0% |
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.