DuPont Decomposition
Why does ORIENTHOT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.8% = 8.9% × 0.46 × 1.39
Latest: FY2025
Profitability
Net Margin
8.9%
18.6% →8.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.46x
0.13x →0.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.39x
1.54x →1.39x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.9 pp over 3 years. Driven by net margin declining (18.6% → 8.9%), asset turnover improving (0.13x → 0.46x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 18.6% | 0.13 | 1.54 | 3.9% |
| FY2024 | ₹0Cr | ₹0Cr | 18.0% | 0.12 | 1.44 | 3.1% |
| FY2025 | ₹0Cr | ₹0Cr | 8.9% | 0.46 | 1.39 | 5.8% |
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.