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
2.8% = 1.4% × 0.97 × 2.08
Latest: FY2025
Profitability
Net Margin
1.4%
-25.2% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
0.24x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.08x
2.19x →2.08x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 16.1 pp over 3 years. Driven by net margin improving (-25.2% → 1.4%), asset turnover improving (0.24x → 0.97x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -25.2% | 0.24 | 2.19 | -13.2% |
| FY2024 | ₹0Cr | ₹0Cr | 0.3% | 0.23 | 2.35 | 0.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.4% | 0.97 | 2.08 | 2.8% |
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.