DuPont Decomposition
Why does VISAKAIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.4% = -0.2% × 1.07 × 1.91
Latest: FY2025
Profitability
Net Margin
-0.2%
1.0% →-0.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
0.33x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.91x
1.78x →1.91x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-0%. Driven by net margin declining (1.0% → -0.2%), asset turnover improving (0.33x → 1.07x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.0% | 0.33 | 1.78 | 0.6% |
| FY2024 | ₹0Cr | ₹0Cr | 0.3% | 0.27 | 1.99 | 0.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.2% | 1.07 | 1.91 | -0.4% |
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.