DuPont Decomposition
Why does LASA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-17.6% = -10.4% × 1.40 × 1.21
Latest: FY2025
Profitability
Net Margin
-10.4%
-3.9% →-10.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.40x
0.66x →1.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.32x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.2 pp over 4 years. Driven by net margin declining (-3.9% → -10.4%), asset turnover improving (0.66x → 1.40x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -3.9% | 0.66 | 1.32 | -3.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -29.8% | 0.79 | 1.39 | -32.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -20.8% | 0.69 | 1.56 | -22.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -10.4% | 1.40 | 1.21 | -17.6% |
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.