DuPont Decomposition
Why does UNIECOM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.2% = 13.1% × 0.59 × 3.25
Latest: FY2025
Profitability
Net Margin
13.1%
10.2% →13.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
1.00x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.25x
1.43x →3.25x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.7 pp over 4 years. Driven by net margin improving (10.2% → 13.1%), asset turnover declining (1.00x → 0.59x), leverage rising (1.43x → 3.25x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.2% | 1.00 | 1.43 | 14.5% |
| FY2023 | ₹0Cr | ₹0Cr | 7.2% | 1.10 | 1.58 | 12.5% |
| FY2024 | ₹0Cr | ₹0Cr | 12.7% | 0.95 | 1.58 | 19.0% |
| FY2025 | ₹0Cr | ₹0Cr | 13.1% | 0.59 | 3.25 | 25.2% |
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.