DuPont Decomposition
Why does ORICONENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 82.5% × 0.13 × 1.07
Latest: FY2025
Profitability
Net Margin
82.5%
1.6% →82.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.13x
0.13x →0.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.07x
1.20x →1.07x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.9 pp over 3 years. Driven by net margin improving (1.6% → 82.5%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.6% | 0.13 | 1.20 | 0.2% |
| FY2024 | ₹0Cr | ₹0Cr | 44.1% | 0.02 | 1.22 | 1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 82.5% | 0.13 | 1.07 | 11.1% |
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.