Cash Conversion WeaknessAn operating cash flow to net income ratio of 0.16 indicates cash conversion lags reported earnings, which can restrict funding for capex, working capital or dividends. Even with FCF growth, persistent low cash conversion raises reliance on accruals or external financing over cycles.
Operational Efficiency / Margin DivergenceMaterial differences between EBIT and EBITDA margins suggest cost timing, non-cash items or operating inefficiencies that may not sustain headline net margins. Without improving core operational efficiency, profitability could be vulnerable when industry pricing or volumes normalize.
Cyclical End-Market ExposureRevenue depends on order volumes from cyclical sectors (mining, power, cement, ports). Structural cyclicality in customer capex leads to durable volatility in order-books and utilization, complicating long-term revenue visibility and capacity planning.