DuPont Decomposition

Why does UNIINFO earn its ROE?

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

ROE = Net Margin × Asset Turnover × Equity Multiplier

-2.1% = -2.1% × 0.81 × 1.25

Latest: FY2025

Profitability

Net Margin

-2.1%

-6.8% →-2.1%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.81x

1.07x →0.81x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.25x

1.23x →1.25x

Assets funded by equity vs debt

Trend Analysis

ROE improved by 6.9 pp over 4 years. Driven by net margin improving (-6.8% → -2.1%), asset turnover declining (1.07x → 0.81x).

Historical Decomposition

Last 4 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20220Cr-0Cr-6.8%1.071.23-9.0%
FY20230Cr0Cr1.7%0.831.321.9%
FY20240Cr0Cr1.1%1.331.131.6%
FY20250Cr-0Cr-2.1%0.811.25-2.1%

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.

UNIINFO DuPont Analysis — ROE -2.1% | YieldIQ