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
20.7% = 7.3% × 1.24 × 2.28
Latest: FY2026
Profitability
Net Margin
7.3%
7.5% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.24x
1.56x →1.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.28x
2.12x →2.28x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.8 pp over 5 years. Driven by asset turnover declining (1.56x → 1.24x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.5% | 1.56 | 2.12 | 24.6% |
| FY2023 | ₹0Cr | ₹0Cr | 12.3% | 1.39 | 1.94 | 33.1% |
| FY2024 | ₹0Cr | ₹0Cr | 3.1% | 1.30 | 2.34 | 9.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 1.22 | 2.38 | 16.9% |
| FY2026 | ₹0Cr | ₹0Cr | 7.3% | 1.24 | 2.28 | 20.7% |
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.