DuPont Decomposition
Why does LCCINFOTEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-1884.9% = -3024.3% × 0.22 × 2.79
Latest: FY2024
Profitability
Net Margin
-3024.3%
-63.5% →-3024.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.02x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.79x
1.09x →2.79x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1883.6 pp over 3 years. Driven by net margin declining (-63.5% → -3024.3%), asset turnover improving (0.02x → 0.22x), leverage rising (1.09x → 2.79x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -63.5% | 0.02 | 1.09 | -1.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -40.3% | 0.03 | 1.10 | -1.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -3024.3% | 0.22 | 2.79 | -1884.9% |
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.