Sharp Free Cash Flow DeclineA 57.5% drop in free cash flow materially reduces internal funding for capex, working capital cushions, and shareholder returns. Over several months this weakens self-financing capacity and increases reliance on external funding or slower growth if not reversed.
Weak Cash Conversion RatiosAn OCF-to-net-income ratio of 0.19 and FCF-to-net-income of 0.46 show profits are not converting well to cash. In project-driven construction, prolonged receivables, retention or high working capital can strain liquidity and limit ability to absorb contract timing shocks.
Net Profit Margin CompressionA fall in net margin from 3.72% to 2.87% reduces the cushion to absorb cost shocks or competitive bidding. Even with rising gross margins, lower net margins suggest higher SG&A, finance costs, or other pressures that can impair sustainable cash generation and reinvestment ability.