DuPont Decomposition
Why does LUMAXTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.8% = 5.2% × 1.06 × 2.50
Latest: FY2025
Profitability
Net Margin
5.2%
4.8% →5.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
0.23x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.50x
3.30x →2.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.2 pp over 3 years. Driven by asset turnover improving (0.23x → 1.06x), leverage falling (3.30x → 2.50x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.8% | 0.23 | 3.30 | 3.6% |
| FY2024 | ₹0Cr | ₹0Cr | 6.8% | 0.29 | 3.29 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 5.2% | 1.06 | 2.50 | 13.8% |
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.