DuPont Decomposition
Why does VSTTILLERS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.6% = 8.4% × 0.92 × 1.23
Latest: FY2026
Profitability
Net Margin
8.4%
11.7% →8.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
0.88x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.29x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.7 pp over 5 years. Driven by net margin declining (11.7% → 8.4%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.7% | 0.88 | 1.29 | 13.3% |
| FY2023 | ₹0Cr | ₹0Cr | 9.2% | 0.92 | 1.32 | 11.2% |
| FY2024 | ₹0Cr | ₹0Cr | 12.6% | 0.83 | 1.26 | 13.1% |
| FY2025 | ₹0Cr | ₹0Cr | 9.3% | 0.79 | 1.26 | 9.3% |
| FY2026 | ₹0Cr | ₹0Cr | 8.4% | 0.92 | 1.23 | 9.6% |
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.