DuPont Decomposition
Why does UNITDSPR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.5% = 13.2% × 0.91 × 1.63
Latest: FY2025
Profitability
Net Margin
13.2%
1.8% →13.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
0.59x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.63x
1.63x →1.63x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.8 pp over 3 years. Driven by net margin improving (1.8% → 13.2%), asset turnover improving (0.59x → 0.91x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.8% | 0.59 | 1.63 | 1.7% |
| FY2024 | ₹0Cr | ₹0Cr | 3.7% | 0.58 | 1.58 | 3.4% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 0.91 | 1.63 | 19.5% |
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.