DuPont Decomposition
Why does LUXIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.6% = 6.4% × 1.00 × 1.50
Latest: FY2025
Profitability
Net Margin
6.4%
6.0% →6.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.00x
1.12x →1.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.50x
1.46x →1.50x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~10%. Driven by asset turnover declining (1.12x → 1.00x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.0% | 1.12 | 1.46 | 9.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.6% | 1.07 | 1.37 | 8.2% |
| FY2025 | ₹0Cr | ₹0Cr | 6.4% | 1.00 | 1.50 | 9.6% |
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.