DuPont Decomposition
Why does ORIENTBELL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.9% = 0.4% × 1.26 × 1.68
Latest: FY2025
Profitability
Net Margin
0.4%
3.2% →0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.26x
0.42x →1.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
1.55x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 3 years. Driven by net margin declining (3.2% → 0.4%), asset turnover improving (0.42x → 1.26x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.2% | 0.42 | 1.55 | 2.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.4% | 0.38 | 1.77 | 1.6% |
| FY2025 | ₹0Cr | ₹0Cr | 0.4% | 1.26 | 1.68 | 0.9% |
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.