DuPont Decomposition
Why does UTKARSHBNK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.8% = 0.9% × 0.09 × 9.46
Latest: FY2025
Profitability
Net Margin
0.9%
4.9% →0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.09x
0.08x →0.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
9.46x
9.58x →9.46x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.1 pp over 3 years. Driven by net margin declining (4.9% → 0.9%). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.9% | 0.08 | 9.58 | 3.9% |
| FY2023 | ₹0Cr | ₹0Cr | 22.1% | 0.10 | 9.56 | 20.2% |
| FY2025 | ₹0Cr | ₹0Cr | 0.9% | 0.09 | 9.46 | 0.8% |
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.