DuPont Decomposition
Why does ORIENTCER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.5% = 3.1% × 0.78 × 1.48
Latest: FY2025
Profitability
Net Margin
3.1%
2.6% →3.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.78x
0.78x →0.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.48x
1.38x →1.48x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~4%.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.6% | 0.78 | 1.38 | 2.8% |
| FY2023 | ₹0Cr | ₹0Cr | 4.7% | 0.92 | 1.26 | 5.5% |
| FY2024 | ₹0Cr | ₹0Cr | 6.1% | 0.77 | 1.47 | 6.9% |
| FY2025 | ₹0Cr | ₹0Cr | 3.1% | 0.78 | 1.48 | 3.5% |
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.