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
20.5% = 14.7% × 0.86 × 1.62
Latest: FY2026
Profitability
Net Margin
14.7%
8.6% →14.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
1.08x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.80x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.8 pp over 5 years. Driven by net margin improving (8.6% → 14.7%), asset turnover declining (1.08x → 0.86x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.6% | 1.08 | 1.80 | 16.7% |
| FY2023 | ₹0Cr | ₹0Cr | 10.8% | 1.08 | 1.63 | 18.9% |
| FY2024 | ₹0Cr | ₹0Cr | 12.5% | 1.00 | 1.58 | 19.8% |
| FY2025 | ₹0Cr | ₹0Cr | 13.7% | 0.87 | 1.63 | 19.5% |
| FY2026 | ₹0Cr | ₹0Cr | 14.7% | 0.86 | 1.62 | 20.5% |
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.