DuPont Decomposition
Why does ULTRACEMCO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.7% = 9.2% × 0.63 × 1.85
Latest: FY2026
Profitability
Net Margin
9.2%
13.9% →9.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.63x
0.63x →0.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
1.66x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.9 pp over 5 years. Driven by net margin declining (13.9% → 9.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.9% | 0.63 | 1.66 | 14.5% |
| FY2023 | ₹0Cr | ₹0Cr | 8.1% | 0.68 | 1.68 | 9.3% |
| FY2024 | ₹0Cr | ₹0Cr | 10.0% | 0.69 | 1.67 | 11.6% |
| FY2025 | ₹0Cr | ₹0Cr | 8.0% | 0.57 | 1.89 | 8.5% |
| FY2026 | ₹0Cr | ₹0Cr | 9.2% | 0.63 | 1.85 | 10.7% |
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.