Negative Free Cash FlowPersistent negative free cash flow from elevated capex can constrain liquidity and limit strategic optionality. Over months this raises reliance on external financing, increases interest and refinancing risk, and may force trade-offs between growth projects, dividends and working capital needs.
Declining Net Profit MarginA falling net margin reduces retained earnings and weakens return on equity even if revenue rises. Structurally, lower bottom-line profitability makes the company more sensitive to interest, tax or regulatory cost shifts and limits its capacity to self-fund expansion or buffer adverse shocks.
Regulatory & State DependenceHeavy dependence on state-controlled excise regimes creates structural revenue and working-capital risk: policy changes, tender rules or route-to-market shifts can materially alter volumes, realizations and cash conversion. This regulatory exposure impairs predictability.