DuPont Decomposition
Why does VRLLOG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.9% = 5.8% × 1.22 × 2.38
Latest: FY2025
Profitability
Net Margin
5.8%
27.7% →5.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.22x
0.37x →1.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.38x
1.94x →2.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.9 pp over 3 years. Driven by net margin declining (27.7% → 5.8%), asset turnover improving (0.37x → 1.22x), leverage rising (1.94x → 2.38x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 27.7% | 0.37 | 1.94 | 19.8% |
| FY2024 | ₹0Cr | ₹0Cr | 2.8% | 0.35 | 2.34 | 2.3% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 1.22 | 2.38 | 16.9% |
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.