Weak Cash Flow GenerationSignificantly lower operating cash flow and negative free cash flow limit the firm’s internal ability to fund capex, maintenance and growth. Over several quarters this raises dependence on external financing, constrains strategic flexibility and increases refinancing and liquidity vulnerability.
Rising LeverageAn increased debt-to-equity ratio elevates interest and refinancing risk, reducing financial headroom for new projects. For a capital-intensive renewables operator, higher leverage can crowd out investment in plant upgrades or expansion and raises sensitivity to rate cycles over the medium term.
Pressure On ProfitabilityDeclining gross and net margins alongside lower ROE indicate mounting cost or pricing pressures and weaker capital returns. Persisting margin erosion can impair cash generation, reduce ability to self-fund projects and weaken competitiveness versus more efficient peers over multiple quarters.