DuPont Decomposition
Why does UNICHEMLAB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.6% = 6.7% × 0.58 × 1.46
Latest: FY2025
Profitability
Net Margin
6.7%
-3.4% →6.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.58x
0.41x →0.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
1.31x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.4 pp over 3 years. Driven by net margin improving (-3.4% → 6.7%), asset turnover improving (0.41x → 0.58x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -3.4% | 0.41 | 1.31 | -1.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -7.4% | 0.55 | 1.34 | -5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 6.7% | 0.58 | 1.46 | 5.6% |
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.