Negative MarginsPersistently negative gross and operating margins signal structural profitability issues, limiting retained earnings and reinvestment. Over 2-6 months this constrains ability to improve operations, compete on tenders, and rebuild margins without meaningful cost, pricing or mix changes.
Cash Flow WeaknessNegative operating and free cash flows undermine the firm's ability to fund working capital and project execution internally. Reliance on external financing raises financing costs and execution risk on longer contracts, making liquidity a structural vulnerability in coming quarters.
Rising Leverage And Negative ROEAn uptick in leverage combined with negative ROE shows the company is using more debt while failing to generate shareholder returns. This reduces financial flexibility, raises interest burden and increases downside if project delays or margin pressure persist over the medium term.