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
13.7% = 8.8% × 0.88 × 1.76
Latest: FY2025
Profitability
Net Margin
8.8%
9.8% →8.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.88x
1.32x →0.88x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.76x
2.54x →1.76x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 19.3 pp over 3 years. Driven by net margin declining (9.8% → 8.8%), asset turnover declining (1.32x → 0.88x), leverage falling (2.54x → 1.76x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| 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% |
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.