DuPont Decomposition
Why does ONGC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.7% = 6.0% × 0.80 × 2.03
Latest: FY2025
Profitability
Net Margin
6.0%
9.3% →6.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.84x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.03x
2.06x →2.03x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.3 pp over 4 years. Driven by net margin declining (9.3% → 6.0%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.3% | 0.84 | 2.06 | 16.0% |
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 0.27 | 2.19 | 2.0% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 0.23 | 2.11 | 3.4% |
| FY2025 | ₹0.1Cr | ₹0Cr | 6.0% | 0.80 | 2.03 | 9.7% |
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.