Rising Total DebtAlthough leverage ratios are improving, the absolute rise in total debt increases financial risk if cash flows weaken. Higher debt can raise interest expense, limit strategic flexibility, and pressure credit metrics, requiring sustained cash generation to avoid material balance sheet strain.
Modest Net Profit MarginA sub-5% net margin, despite high gross margins, indicates limited operating leverage or elevated SG&A/other costs. Low net profitability leaves less buffer against cost inflation and competitive pricing, constraining the company's ability to self-fund growth and absorb shocks over the medium term.
Moderate Revenue Growth RateRevenue growth near 6% is steady but modest for a logistics player facing scale-driven competition. Without faster top-line expansion or diversification, the company may struggle to capture significant market share gains or achieve stronger margin expansion, limiting long-term competitive upside.