DuPont Decomposition
Why does UNOMINDA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.5% = 6.1% × 1.43 × 2.01
Latest: FY2026
Profitability
Net Margin
6.1%
4.3% →6.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.43x
1.20x →1.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.01x
1.99x →2.01x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.2 pp over 5 years. Driven by net margin improving (4.3% → 6.1%), asset turnover improving (1.20x → 1.43x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.3% | 1.20 | 1.99 | 10.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.9% | 1.33 | 2.00 | 15.7% |
| FY2024 | ₹0Cr | ₹0Cr | 6.3% | 1.40 | 2.00 | 17.7% |
| FY2025 | ₹0Cr | ₹0Cr | 5.6% | 1.43 | 2.05 | 16.5% |
| FY2026 | ₹0Cr | ₹0Cr | 6.1% | 1.43 | 2.01 | 17.5% |
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.