DuPont Decomposition
Why does ORIENTALTL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.7% = 40.8% × 0.17 × 1.28
Latest: FY2025
Profitability
Net Margin
40.8%
-31.6% →40.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.17x
0.15x →0.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.73x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.1 pp over 4 years. Driven by net margin improving (-31.6% → 40.8%), leverage falling (1.73x → 1.28x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -31.6% | 0.15 | 1.73 | -8.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -49.6% | 0.07 | 1.74 | -6.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -178.3% | 0.03 | 1.78 | -10.7% |
| FY2025 | ₹0Cr | ₹0Cr | 40.8% | 0.17 | 1.28 | 8.7% |
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.