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
8.9% = 13.8% × 0.50 × 1.29
Latest: FY2026
Profitability
Net Margin
13.8%
-9.2% →13.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.28x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.79x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.5 pp over 5 years. Driven by net margin improving (-9.2% → 13.8%), asset turnover improving (0.28x → 0.50x), leverage falling (1.79x → 1.29x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -9.2% | 0.28 | 1.79 | -4.6% |
| FY2023 | ₹0Cr | ₹0Cr | 13.8% | 0.48 | 1.54 | 10.1% |
| FY2024 | ₹0Cr | ₹0Cr | 12.6% | 0.44 | 1.44 | 8.0% |
| FY2025 | ₹0Cr | ₹0Cr | 8.9% | 0.46 | 1.39 | 5.8% |
| FY2026 | ₹0Cr | ₹0Cr | 13.8% | 0.50 | 1.29 | 8.9% |
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.