DuPont Decomposition
Why does ODIGMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.7% = 0.8% × 0.70 × 1.15
Latest: FY2025
Profitability
Net Margin
0.8%
4.8% →0.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
1.33x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
3.49x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.8 pp over 4 years. Driven by net margin declining (4.8% → 0.8%), asset turnover declining (1.33x → 0.70x), leverage falling (3.49x → 1.15x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 1.33 | 3.49 | 22.4% |
| FY2023 | ₹0Cr | ₹0Cr | 5.6% | 2.28 | 3.35 | 42.3% |
| FY2024 | ₹0Cr | ₹0Cr | 0.1% | 0.48 | 1.28 | 0.1% |
| FY2025 | ₹0Cr | ₹0Cr | 0.8% | 0.70 | 1.15 | 0.7% |
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.