Significant Revenue ContractionA material decline in revenue weakens scale economics and reduces operating cash inflows used to fund ongoing projects. Over 2-6 months this can force greater reliance on external financing, delay project launches, and strain margins if fixed costs remain unchanged.
Low And Inconsistent ProfitabilityLow net margins and a weak, volatile ROE limit retained earnings and the ability to reinvest in land or development. This amplifies sensitivity to cost shocks or soft sales, constraining growth and reducing the cushion against cyclical real estate downturns over the coming months.
Inconsistent Revenue GrowthVolatile revenue trends reflect project-timing and sales execution risk inherent in development businesses. Such inconsistency complicates cash flow forecasting, hampers steady project rollout and land acquisition planning, and raises execution risk over the medium term.