Thin Net ProfitabilityAlthough profitable in FY2025, net margin is only ~3% and the company had losses across FY2020–FY2024. Low net margins leave limited cushion against cost inflation or demand slowdowns, making sustained profitability sensitive to execution, pricing and cost control over the medium term.
Higher LeverageLeverage rising to a debt-to-equity ratio around 1.06 reduces balance-sheet flexibility and raises interest and refinancing risk. In a capital-intensive recovery, higher debt constrains the company's ability to invest opportunistically and increases vulnerability if revenue or cash flow growth falters.
Uneven Cash-flow HistoryFY2025 cash flow improvement is meaningful, but prior negative FCF years and noted timing/working-capital sensitivity show conversion volatility. Persistent variability in cash conversion can strain liquidity, complicate planning and increase reliance on external financing during downturns.