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
-3.6% = -6.2% × 0.37 × 1.57
Latest: FY2025
Profitability
Net Margin
-6.2%
10.5% →-6.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.37x
0.43x →0.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.57x
1.45x →1.57x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.1 pp over 3 years. Driven by net margin declining (10.5% → -6.2%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.5% | 0.43 | 1.45 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 0.8% | 0.34 | 1.50 | 0.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -6.2% | 0.37 | 1.57 | -3.6% |
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.