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
5.7% = 3.6% × 0.94 × 1.68
Latest: FY2026
Profitability
Net Margin
3.6%
14.9% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.94x
1.13x →0.94x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
1.54x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.3 pp over 5 years. Driven by net margin declining (14.9% → 3.6%), asset turnover declining (1.13x → 0.94x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.9% | 1.13 | 1.54 | 25.9% |
| FY2023 | ₹0Cr | ₹0Cr | 6.0% | 1.12 | 1.46 | 9.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.6% | 1.06 | 1.40 | 8.3% |
| FY2025 | ₹0Cr | ₹0Cr | 6.4% | 1.00 | 1.48 | 9.6% |
| FY2026 | ₹0Cr | ₹0Cr | 3.6% | 0.94 | 1.68 | 5.7% |
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.