DuPont Decomposition
Why does UNIMECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.5% = 34.6% × 0.30 × 1.21
Latest: FY2025
Profitability
Net Margin
34.6%
9.5% →34.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.30x
0.63x →0.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
2.06x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~12%. Driven by net margin improving (9.5% → 34.6%), asset turnover declining (0.63x → 0.30x), leverage falling (2.06x → 1.21x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.5% | 0.63 | 2.06 | 12.3% |
| FY2023 | ₹0Cr | ₹0Cr | 24.5% | 1.00 | 1.91 | 46.7% |
| FY2024 | ₹0Cr | ₹0Cr | 27.9% | 1.19 | 1.61 | 53.5% |
| FY2025 | ₹0Cr | ₹0Cr | 34.6% | 0.30 | 1.21 | 12.5% |
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.