DuPont Decomposition
Why does VISHNU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.3% = 8.9% × 0.77 × 1.95
Latest: FY2026
Profitability
Net Margin
8.9%
7.6% →8.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
1.16x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.95x
3.30x →1.95x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 16.1 pp over 5 years. Driven by net margin improving (7.6% → 8.9%), asset turnover declining (1.16x → 0.77x), leverage falling (3.30x → 1.95x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.6% | 1.16 | 3.30 | 29.4% |
| FY2023 | ₹0Cr | ₹0Cr | 9.8% | 1.32 | 2.54 | 33.0% |
| FY2024 | ₹0Cr | ₹0Cr | 8.4% | 0.91 | 1.89 | 14.4% |
| FY2025 | ₹0Cr | ₹0Cr | 8.8% | 0.88 | 1.76 | 13.7% |
| FY2026 | ₹0Cr | ₹0Cr | 8.9% | 0.77 | 1.95 | 13.3% |
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.