DuPont Decomposition
Why does ORBTEXP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.3% = 18.3% × 0.65 × 1.21
Latest: FY2025
Profitability
Net Margin
18.3%
14.3% →18.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
0.45x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.43x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.1 pp over 4 years. Driven by net margin improving (14.3% → 18.3%), asset turnover improving (0.45x → 0.65x), leverage falling (1.43x → 1.21x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.3% | 0.45 | 1.43 | 9.2% |
| FY2023 | ₹0Cr | ₹0Cr | 17.7% | 0.68 | 1.32 | 15.8% |
| FY2024 | ₹0Cr | ₹0Cr | 17.3% | 0.67 | 1.26 | 14.6% |
| FY2025 | ₹0Cr | ₹0Cr | 18.3% | 0.65 | 1.21 | 14.3% |
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.