DuPont Decomposition
Why does LPDC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-9.3% = -317.3% × 0.03 × 1.01
Latest: FY2025
Profitability
Net Margin
-317.3%
-11.3% →-317.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.03x
0.01x →0.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.01x
1.01x →1.01x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.2 pp over 4 years. Driven by net margin declining (-11.3% → -317.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -11.3% | 0.01 | 1.01 | -0.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -1608.3% | 0.01 | 1.01 | -11.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -883.4% | 0.03 | 1.03 | -26.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -317.3% | 0.03 | 1.01 | -9.3% |
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.