High LeverageSignificant leverage increases refinancing and interest-rate sensitivity for an NBFC. Over a multi-month horizon, high debt levels raise funding fragility, constrain capital flexibility for growth or provisioning, and elevate the company's vulnerability to market tightening.
Negative Operating And Free Cash FlowsPersistent negative operating and free cash flows mean accounting profits aren't converting into liquidity. This structural cash shortfall forces reliance on external funding, restricts deleveraging ability, and limits capacity to self-fund loan growth or absorb adverse credit cycles.
Funding-cost SensitivityCSL's business depends on the net interest spread versus cost of funds. Given negative cash flows and high leverage, margin pressure from rising funding costs or tighter credit availability would structurally erode profitability and hamper sustainable growth without cheaper, stable funding.