DuPont Decomposition
Why does ORIENTELEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.6% = 2.9% × 2.00 × 2.19
Latest: FY2026
Profitability
Net Margin
2.9%
5.3% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.00x
2.03x →2.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.19x
2.19x →2.19x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.8 pp over 5 years. Driven by net margin declining (5.3% → 2.9%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.3% | 2.03 | 2.19 | 23.4% |
| FY2023 | ₹0Cr | ₹0Cr | 3.0% | 1.97 | 2.16 | 13.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.7% | 1.91 | 2.27 | 11.8% |
| FY2025 | ₹0Cr | ₹0Cr | 2.7% | 1.99 | 2.24 | 12.0% |
| FY2026 | ₹0Cr | ₹0Cr | 2.9% | 2.00 | 2.19 | 12.6% |
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.