Falling Net Profit MarginA declining net margin erodes retained earnings and reduces the upside from revenue growth. If cost pressures or inefficiencies persist, long‑term return on invested capital will suffer, limiting ability to rebuild equity and invest in productivity improvements without cutting other areas.
Declining ROE And Leverage RiskFalling ROE signals weakening capital efficiency, while moderate leverage typical for the steel sector still raises refinancing and interest risks during downturns. Together they constrain financial flexibility and make sustained shareholder returns more dependent on operational fixes rather than financial engineering.
Earnings Per Share ContractionA sharp EPS decline reflects meaningful pressure on bottom‑line profitability, whether from lower margins, higher costs or one‑off items. Persistently weak EPS reduces retained capital available for reinvestment and dividends and may limit management's ability to fund growth initiatives without external capital.