DuPont Decomposition
Why does LOTUSDEV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.4% = 30.8% × 0.33 × 1.23
Latest: FY2026
Profitability
Net Margin
30.8%
12.6% →30.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.33x
0.24x →0.33x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
13.40x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 28.3 pp over 5 years. Driven by net margin improving (12.6% → 30.8%), leverage falling (13.40x → 1.23x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.6% | 0.24 | 13.40 | 40.8% |
| FY2023 | ₹0Cr | ₹0Cr | 10.0% | 0.34 | 10.05 | 34.4% |
| FY2024 | ₹0Cr | ₹0Cr | 26.0% | 0.63 | 4.35 | 70.7% |
| FY2025 | ₹0Cr | ₹0Cr | 41.4% | 0.45 | 1.31 | 24.4% |
| FY2026 | ₹0Cr | ₹0Cr | 30.8% | 0.33 | 1.23 | 12.4% |
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.