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

15.4% = 5.7% × 1.41 × 1.92

Latest: FY2025

Profitability

Net Margin

5.7%

6.7% →5.7%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

1.41x

0.35x →1.41x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.92x

2.00x →1.92x

Assets funded by equity vs debt

Trend Analysis

ROE improved by 10.8 pp over 3 years. Driven by net margin declining (6.7% → 5.7%), asset turnover improving (0.35x → 1.41x).

Historical Decomposition

Last 3 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20230Cr0Cr6.7%0.352.004.7%
FY20240Cr0Cr8.0%0.382.006.1%
FY20250Cr0Cr5.7%1.411.9215.4%

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.