DuPont Decomposition
Why does OMINFRAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.5% = 5.0% × 0.50 × 1.80
Latest: FY2025
Profitability
Net Margin
5.0%
2.2% →5.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.23x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
2.26x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.4 pp over 3 years. Driven by net margin improving (2.2% → 5.0%), asset turnover improving (0.23x → 0.50x), leverage falling (2.26x → 1.80x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.2% | 0.23 | 2.26 | 1.1% |
| FY2024 | ₹0Cr | ₹0Cr | 1.1% | 0.20 | 2.01 | 0.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 0.50 | 1.80 | 4.5% |
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.