DuPont Decomposition
Why does OCCLLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 9.4% × 0.84 × 1.40
Latest: FY2026
Profitability
Net Margin
9.4%
9.8% →9.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.51x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.54x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.4 pp over 4 years. Driven by asset turnover improving (0.51x → 0.84x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.8% | 0.51 | 1.54 | 7.7% |
| FY2023 | ₹0Cr | ₹0Cr | 9.1% | 0.60 | 1.47 | 8.1% |
| FY2025 | ₹0Cr | ₹0Cr | 7.0% | 0.57 | 1.35 | 5.4% |
| FY2026 | ₹0Cr | ₹0Cr | 9.4% | 0.84 | 1.40 | 11.1% |
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.