Declining Margins And Inconsistent RevenueVolatile top-line and deteriorating gross and net margins suggest structural cost pressures or weak pricing power. Persistent margin erosion impairs ability to cover fixed costs and investment needs, reducing sustainable earnings and pressuring return on equity over the medium term.
Falling Free Cash FlowDeclining free cash flow constrains the company's flexibility to fund growth, pay dividends or reduce leverage without external capital. Over months, weakening FCF can force trade-offs between maintenance capex and expansion, and increase dependence on parent support or debt financing.
High Exposure To Input And Logistics CostsEnergy and freight are meaningful, volatile cost components for cement. If the company cannot fully pass these through to customers, sustained input cost inflation will compress margins. This structural exposure elevates earnings sensitivity to commodity and fuel price cycles.