DuPont Decomposition
Why does UTTAMSUGAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.7% = 4.8% × 0.85 × 2.61
Latest: FY2025
Profitability
Net Margin
4.8%
3.4% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
1.26x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.61x
2.81x →2.61x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.4 pp over 3 years. Driven by net margin improving (3.4% → 4.8%), asset turnover declining (1.26x → 0.85x), leverage falling (2.81x → 2.61x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 1.26 | 2.81 | 12.1% |
| FY2024 | ₹0Cr | ₹0Cr | 6.5% | 1.15 | 2.56 | 19.0% |
| FY2025 | ₹0Cr | ₹0Cr | 4.8% | 0.85 | 2.61 | 10.7% |
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.