DuPont Decomposition
Why does VISHWARAJ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-13.2% = -8.2% × 0.55 × 2.92
Latest: FY2025
Profitability
Net Margin
-8.2%
12.9% →-8.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.55x
0.61x →0.55x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.92x
2.72x →2.92x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 34.5 pp over 4 years. Driven by net margin declining (12.9% → -8.2%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.9% | 0.61 | 2.72 | 21.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -3.8% | 0.85 | 2.84 | -9.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 0.69 | 2.98 | 5.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -8.2% | 0.55 | 2.92 | -13.2% |
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.