DuPont Decomposition
Why does ORIENTPPR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.0% = -3.2% × 0.42 × 1.48
Latest: FY2026
Profitability
Net Margin
-3.2%
-5.0% →-3.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.42x
0.27x →0.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.48x
1.40x →1.48x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-2%. Driven by net margin improving (-5.0% → -3.2%), asset turnover improving (0.27x → 0.42x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -5.0% | 0.27 | 1.40 | -1.9% |
| FY2023 | ₹0Cr | ₹0Cr | 10.7% | 0.42 | 1.45 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 0.8% | 0.34 | 1.50 | 0.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -6.1% | 0.37 | 1.57 | -3.6% |
| FY2026 | ₹0Cr | ₹-0Cr | -3.2% | 0.42 | 1.48 | -2.0% |
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.