DuPont Decomposition
Why does OSIAHYPER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.0% = 1.4% × 1.70 × 2.14
Latest: FY2025
Profitability
Net Margin
1.4%
1.5% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.70x
1.55x →1.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.14x
4.17x →2.14x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.9 pp over 4 years. Driven by asset turnover improving (1.55x → 1.70x), leverage falling (4.17x → 2.14x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 1.55 | 4.17 | 9.9% |
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 1.70 | 3.86 | 8.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1.6% | 2.09 | 2.75 | 9.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.4% | 1.70 | 2.14 | 5.0% |
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.