DuPont Decomposition
Why does UTIAMC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.2% = 50.6% × 0.26 × 1.10
Latest: FY2025
Profitability
Net Margin
50.6%
28.5% →50.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.07x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.08x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.0 pp over 3 years. Driven by net margin improving (28.5% → 50.6%), asset turnover improving (0.07x → 0.26x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 28.5% | 0.07 | 1.08 | 2.2% |
| FY2024 | ₹0Cr | ₹0Cr | 43.6% | 0.08 | 1.07 | 3.6% |
| FY2025 | ₹0Cr | ₹0Cr | 50.6% | 0.26 | 1.10 | 14.2% |
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.