DuPont Decomposition
Why does ORIENTTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.3% = 6.0% × 1.60 × 1.59
Latest: FY2025
Profitability
Net Margin
6.0%
7.2% →6.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.60x
2.42x →1.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
2.05x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.3 pp over 4 years. Driven by net margin declining (7.2% → 6.0%), asset turnover declining (2.42x → 1.60x), leverage falling (2.05x → 1.59x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.2% | 2.42 | 2.05 | 35.6% |
| FY2023 | ₹0Cr | ₹0Cr | 7.2% | 2.23 | 1.86 | 29.7% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 1.94 | 1.77 | 23.6% |
| FY2025 | ₹0Cr | ₹0Cr | 6.0% | 1.60 | 1.59 | 15.3% |
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.