DuPont Decomposition
Why does VSTIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.9% = 20.8% × 0.77 × 1.37
Latest: FY2025
Profitability
Net Margin
20.8%
25.4% →20.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.78x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.40x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.8 pp over 3 years. Driven by net margin declining (25.4% → 20.8%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 25.4% | 0.78 | 1.40 | 27.7% |
| FY2024 | ₹0Cr | ₹0Cr | 21.3% | 0.82 | 1.37 | 24.1% |
| FY2025 | ₹0Cr | ₹0Cr | 20.8% | 0.77 | 1.37 | 21.9% |
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.