DuPont Decomposition
Why does UNIPARTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.9% = 9.4% × 0.80 × 1.32
Latest: FY2025
Profitability
Net Margin
9.4%
14.3% →9.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
1.14x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
1.50x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.7 pp over 4 years. Driven by net margin declining (14.3% → 9.4%), asset turnover declining (1.14x → 0.80x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.3% | 1.14 | 1.50 | 24.6% |
| FY2023 | ₹0Cr | ₹0Cr | 13.8% | 0.31 | 1.27 | 5.5% |
| FY2024 | ₹0Cr | ₹0Cr | 9.9% | 0.26 | 1.30 | 3.3% |
| FY2025 | ₹0Cr | ₹0Cr | 9.4% | 0.80 | 1.32 | 9.9% |
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.