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
7.2% = 5.4% × 0.97 × 1.38
Latest: FY2026
Profitability
Net Margin
5.4%
2.6% →5.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
0.78x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.38x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.5 pp over 5 years. Driven by net margin improving (2.6% → 5.4%), asset turnover improving (0.78x → 0.97x).
Historical Decomposition
Last 5 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 | 3.0% | 0.78 | 1.48 | 3.5% |
| FY2026 | ₹0Cr | ₹0Cr | 5.4% | 0.97 | 1.38 | 7.2% |
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.