DuPont Decomposition
Why does VIYASH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.1% = 5.2% × 0.74 × 1.59
Latest: FY2026
Profitability
Net Margin
5.2%
2.9% →5.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.74x
0.97x →0.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
2.10x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~6%. Driven by net margin improving (2.9% → 5.2%), asset turnover declining (0.97x → 0.74x), leverage falling (2.10x → 1.59x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.9% | 0.97 | 2.10 | 5.9% |
| FY2023 | ₹0Cr | ₹-0Cr | -8.5% | 0.93 | 2.19 | -17.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.6% | 0.89 | 2.35 | -5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 0.8% | 1.88 | 2.27 | 3.3% |
| FY2026 | ₹0Cr | ₹0Cr | 5.2% | 0.74 | 1.59 | 6.1% |
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.