Declining Revenue TrendA persistent downward revenue trend erodes scale benefits and increases dependency on new wins to replace lost work. Over months this can pressure utilization, reduce bargaining leverage on pricing, and make it harder to cover fixed overheads, constraining margin recovery and reinvestment capacity.
Low Net Profit Margin Despite Slight Margin GainsStable gross margins but weak net margins signal structural cost or SG&A pressures and limited ability to convert revenue into retained earnings. Low profitability limits capacity to self-fund growth, makes returns sensitive to project overruns, and reduces buffer against sector downturns over time.
Moderate Reliance On Debt Financing Despite Improved LeverageAlthough leverage has improved, remaining dependence on debt increases refinancing and interest rate exposure. If revenues continue to decline or cash conversion weakens, servicing debt could constrain capex or working capital, reducing strategic flexibility and increasing financial risk over the medium term.