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Orient Technologies (BOM:544235) ROE % : 27.26% (As of Mar. 2024)


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What is Orient Technologies ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Orient Technologies's annualized net income for the quarter that ended in Mar. 2024 was ₹414 Mil. Orient Technologies's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was ₹1,521 Mil. Therefore, Orient Technologies's annualized ROE % for the quarter that ended in Mar. 2024 was 27.26%.

The historical rank and industry rank for Orient Technologies's ROE % or its related term are showing as below:

BOM:544235' s ROE % Range Over the Past 10 Years
Min: 27.26   Med: 34.36   Max: 35.59
Current: 27.26

During the past 3 years, Orient Technologies's highest ROE % was 35.59%. The lowest was 27.26%. And the median was 34.36%.

BOM:544235's ROE % is ranked better than
88.57% of 2589 companies
in the Software industry
Industry Median: 4.52 vs BOM:544235: 27.26

Orient Technologies ROE % Historical Data

The historical data trend for Orient Technologies's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Orient Technologies ROE % Chart

Orient Technologies Annual Data
Trend Mar22 Mar23 Mar24
ROE %
35.59 34.36 27.26

Orient Technologies Semi-Annual Data
Mar22 Mar23 Mar24
ROE % 35.59 34.36 27.26

Competitive Comparison of Orient Technologies's ROE %

For the Information Technology Services subindustry, Orient Technologies's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Orient Technologies's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, Orient Technologies's ROE % distribution charts can be found below:

* The bar in red indicates where Orient Technologies's ROE % falls into.


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Orient Technologies ROE % Calculation

Orient Technologies's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=414.48/( (1288.24+1753.07)/ 2 )
=414.48/1520.655
=27.26 %

Orient Technologies's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Mar. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=414.48/( (1288.24+1753.07)/ 2 )
=414.48/1520.655
=27.26 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is one times the annual (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Orient Technologies  (BOM:544235) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=414.48/1520.655
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(414.48 / 6028.93)*(6028.93 / 2755.42)*(2755.42 / 1520.655)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.87 %*2.188*1.812
=ROA %*Equity Multiplier
=15.03 %*1.812
=27.26 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=414.48/1520.655
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (414.48 / 549.12) * (549.12 / 529.91) * (529.91 / 6028.93) * (6028.93 / 2755.42) * (2755.42 / 1520.655)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7548 * 1.0363 * 8.79 % * 2.188 * 1.812
=27.26 %

Note: The net income data used here is one times the annual (Mar. 2024) net income data. The Revenue data used here is one times the annual (Mar. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Orient Technologies ROE % Related Terms

Thank you for viewing the detailed overview of Orient Technologies's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Orient Technologies Business Description

Traded in Other Exchanges
Address
MIDC Central Road, 602, Ackruti Center Point, Andheri (East), Mumbai, MH, IND, 400093
Orient Technologies Ltd is an information technology (IT) solutions provider. It includes three segments: IT Infrastructure Products and Services segment which include products and solutions include Data Centre Solutions and End-User Computing. IT Enabled Services (IteS) segment include services include Managed Services, Multi-Vendor Support Services, IT Facility Management Services, Network Operations Centre Services, Security Services, and Renewals. Cloud and Data Management Services segment include services include migration of workload from data centers to cloud. Key revenue is generated from IT Infrastructure segment.

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