DuPont Decomposition
Why does LAXMIINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.7% = 15.8% × 0.17 × 3.91
Latest: FY2026
Profitability
Net Margin
15.8%
15.7% →15.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.17x
0.17x →0.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.91x
4.41x →3.91x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~11%. Driven by leverage falling (4.41x → 3.91x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.7% | 0.17 | 4.41 | 11.6% |
| FY2023 | ₹0Cr | ₹0Cr | 13.0% | 0.16 | 5.10 | 10.5% |
| FY2024 | ₹0Cr | ₹0Cr | 14.1% | 0.16 | 4.88 | 11.1% |
| FY2025 | ₹0Cr | ₹0Cr | 14.7% | 0.17 | 5.48 | 14.0% |
| FY2026 | ₹0Cr | ₹0Cr | 15.8% | 0.17 | 3.91 | 10.7% |
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.