DuPont Decomposition
Why does LYPSAGEMS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-92.0% = -90.9% × 0.25 × 3.97
Latest: FY2025
Profitability
Net Margin
-90.9%
-0.6% →-90.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.25x
0.05x →0.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.97x
2.73x →3.97x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 91.9 pp over 4 years. Driven by net margin declining (-0.6% → -90.9%), asset turnover improving (0.05x → 0.25x), leverage rising (2.73x → 3.97x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -0.6% | 0.05 | 2.73 | -0.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -334.2% | 0.11 | 1.87 | -69.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -344.9% | 0.13 | 2.38 | -103.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -90.9% | 0.25 | 3.97 | -92.0% |
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.