DuPont Decomposition
Why does OAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.2% = 3.7% × 0.81 × 1.73
Latest: FY2025
Profitability
Net Margin
3.7%
2.3% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.81x
0.86x →0.81x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.73x
1.58x →1.73x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.0 pp over 3 years. Driven by net margin improving (2.3% → 3.7%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.3% | 0.86 | 1.58 | 3.2% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 0.84 | 1.57 | 1.6% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 0.81 | 1.73 | 5.2% |
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.