DuPont Decomposition
Why does UNIDT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.7% = 8.9% × 0.50 × 1.28
Latest: FY2025
Profitability
Net Margin
8.9%
28.7% →8.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.62x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.17x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 15.2 pp over 4 years. Driven by net margin declining (28.7% → 8.9%), asset turnover declining (0.62x → 0.50x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 28.7% | 0.62 | 1.17 | 20.9% |
| FY2023 | ₹0Cr | ₹0Cr | 8.7% | 0.42 | 1.14 | 4.2% |
| FY2024 | ₹0Cr | ₹0Cr | 7.2% | 0.36 | 1.41 | 3.7% |
| FY2025 | ₹0Cr | ₹0Cr | 8.9% | 0.50 | 1.28 | 5.7% |
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.