DuPont Decomposition

Why does UJJIVANSFB earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

11.9% = 16.6% × 0.09 × 7.84

Latest: FY2025

Profitability

Net Margin

16.6%

33.5% →16.6%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.09x

0.10x →0.09x

Revenue per ₹ of assets

Leverage

Equity Multiplier

7.84x

7.92x →7.84x

Assets funded by equity vs debt

Trend Analysis

ROE declined by 14.2 pp over 2 years. Driven by net margin declining (33.5% → 16.6%). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.

Historical Decomposition

Last 2 years

Year	Revenue	PAT	Net Margin	Asset TO	Leverage	ROE
FY2023	₹0Cr	₹0Cr	33.5%	0.10	7.92	26.1%
FY2025	₹0Cr	₹0Cr	16.6%	0.09	7.84	11.9%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.