DuPont Decomposition
Why does VIPIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-116.8% = -18.2% × 1.16 × 5.54
Latest: FY2026
Profitability
Net Margin
-18.2%
5.2% →-18.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.16x
1.05x →1.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.54x
2.20x →5.54x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 128.7 pp over 5 years. Driven by net margin declining (5.2% → -18.2%), asset turnover improving (1.05x → 1.16x), leverage rising (2.20x → 5.54x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.2% | 1.05 | 2.20 | 12.0% |
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 1.47 | 2.21 | 23.7% |
| FY2024 | ₹0Cr | ₹0Cr | 2.4% | 1.08 | 3.05 | 8.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -3.2% | 1.17 | 3.01 | -11.2% |
| FY2026 | ₹0Cr | ₹-0Cr | -18.2% | 1.16 | 5.54 | -116.8% |
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.