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
-321.9% = -601.4% × 0.07 × 7.65
Latest: FY2025
Profitability
Net Margin
-601.4%
-63.5% →-601.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.02x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
7.65x
1.09x →7.65x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 320.6 pp over 3 years. Driven by net margin declining (-63.5% → -601.4%), leverage rising (1.09x → 7.65x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
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% |
| FY2025 | ₹0Cr | ₹-0Cr | -601.4% | 0.07 | 7.65 | -321.9% |
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.