Declining Revenue TrendA marked revenue decline reduces scale and can erode fixed-cost absorption, weakening long-term operating leverage. Continued top-line contraction will constrain reinvestment, delay margin normalization and may force pricing or contract concessions to stabilize backlog.
Weak Cash GenerationNegative operating cash flow and falling free cash flow create structural liquidity risk, increasing dependence on external financing. Over months this can limit capex, delay project funding, pressure working capital and reduce strategic flexibility during downturns.
Low Net Profit MarginPersistently low net margins imply limited earnings buffer against cost shocks or project overruns. Even with improving gross margins, weak net profitability constrains retained earnings, limits balance sheet strengthening, and reduces ability to invest in growth initiatives sustainably.