DuPont Decomposition
Why does UNIVASTU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.1% = 6.1% × 0.91 × 2.35
Latest: FY2025
Profitability
Net Margin
6.1%
8.9% →6.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
0.52x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.35x
2.90x →2.35x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~13%. Driven by net margin declining (8.9% → 6.1%), asset turnover improving (0.52x → 0.91x), leverage falling (2.90x → 2.35x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.9% | 0.52 | 2.90 | 13.6% |
| FY2023 | ₹0Cr | ₹0Cr | 7.6% | 0.71 | 2.72 | 14.7% |
| FY2024 | ₹0Cr | ₹0Cr | 5.9% | 0.87 | 2.65 | 13.6% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 0.91 | 2.35 | 13.1% |
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)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.