DuPont Decomposition
Why does ORIENTLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-1.8% = -0.9% × 0.80 × 2.48
Latest: FY2026
Profitability
Net Margin
-0.9%
-2.3% →-0.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.89x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.48x
2.46x →2.48x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.1 pp over 5 years. Driven by net margin improving (-2.3% → -0.9%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2.3% | 0.89 | 2.46 | -5.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.0% | 0.92 | 2.68 | -4.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.6% | 0.94 | 2.64 | -1.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -1.9% | 0.86 | 2.52 | -4.2% |
| FY2026 | ₹0Cr | ₹-0Cr | -0.9% | 0.80 | 2.48 | -1.8% |
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.