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
2.7% = 4.1% × 0.34 × 1.92
Latest: FY2026
Profitability
Net Margin
4.1%
8.5% →4.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.26x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.92x
1.81x →1.92x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.3 pp over 5 years. Driven by net margin declining (8.5% → 4.1%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.5% | 0.26 | 1.81 | 4.0% |
| FY2023 | ₹0Cr | ₹0Cr | 1.6% | 0.52 | 2.26 | 1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 4.4% | 0.74 | 2.01 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 0.50 | 1.91 | 4.8% |
| FY2026 | ₹0Cr | ₹0Cr | 4.1% | 0.34 | 1.92 | 2.7% |
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.