DuPont Decomposition

Why does UNIVPHOTO earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

9.9% = 354.2% × 0.03 × 1.02

Latest: FY2025

Profitability

Net Margin

354.2%

915.9% →354.2%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.03x

0.05x →0.03x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.02x

1.02x →1.02x

Assets funded by equity vs debt

Trend Analysis

ROE declined by 38.0 pp over 4 years. Driven by net margin declining (915.9% → 354.2%).

Historical Decomposition

Last 4 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20220Cr0Cr915.9%0.051.0248.0%
FY20230Cr-0Cr-102.9%0.041.01-4.2%
FY20240Cr-0Cr-605.1%0.041.02-22.7%
FY20250Cr0Cr354.2%0.031.029.9%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.