DuPont Decomposition
Why does LUMAXIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.8% = 4.1% × 1.22 × 3.74
Latest: FY2026
Profitability
Net Margin
4.1%
2.3% →4.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.22x
1.13x →1.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.74x
3.14x →3.74x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.5 pp over 5 years. Driven by net margin improving (2.3% → 4.1%), leverage rising (3.14x → 3.74x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.3% | 1.13 | 3.14 | 8.3% |
| FY2023 | ₹0Cr | ₹0Cr | 4.5% | 1.24 | 3.20 | 17.7% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.01 | 3.87 | 16.5% |
| FY2025 | ₹0Cr | ₹0Cr | 4.1% | 1.19 | 3.69 | 18.1% |
| FY2026 | ₹0Cr | ₹0Cr | 4.1% | 1.22 | 3.74 | 18.8% |
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.