Declining Free Cash FlowA material drop in free cash flow reduces internal funding for capex, working capital and shareholder returns. Poor cash conversion heightens reliance on external financing for growth, limits buffer for project overruns, and raises vulnerability to timing mismatches in receivables.
Revenue VolatilitySharp year-to-year revenue swings reflect dependency on lumpy tender wins and project cycles. Such volatility undermines earnings predictability, strains capacity utilization planning, and can magnify margin pressure during down cycles, complicating multi-year budgeting and investment decisions.
Dependence On Government TendersHeavy reliance on public sector contracts creates concentration and timing risk: budget cycles, competitive bidding and payment delays can compress margins and cash flows. This structural exposure reduces revenue visibility and increases sensitivity to policy or funding shifts.