DuPont Decomposition
Why does ORCHASP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-9.4% = -49.9% × 0.10 × 1.80
Latest: FY2025
Profitability
Net Margin
-49.9%
0.1% →-49.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.26x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
1.44x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.4 pp over 4 years. Driven by net margin declining (0.1% → -49.9%), asset turnover declining (0.26x → 0.10x), leverage rising (1.44x → 1.80x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.1% | 0.26 | 1.44 | 0.1% |
| FY2023 | ₹0Cr | ₹0Cr | 1.5% | 0.13 | 1.73 | 0.3% |
| FY2024 | ₹0Cr | ₹0Cr | 5.1% | 0.07 | 1.66 | 0.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -49.9% | 0.10 | 1.80 | -9.4% |
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.