Cyclicality And OEM ConcentrationRevenue is structurally tied to commercial-vehicle production cycles and winning OEM nominations. That creates durable demand volatility: downturns in CV production or loss of supplier status can materially reduce volumes. The OEM-dependent sales model makes medium-term revenue sensitive to fleet demand and OEM procurement shifts.
Occasional Negative Free Cash Flow / Cash Management RiskWhile operating cash conversion has improved, historical episodes of negative free cash flow signal potential working-capital or capex timing pressures. Recurring negative FCF periods can constrain reinvestment, dividend policy, or force external financing under stress—an important structural liquidity risk to monitor over 2-6 months.
Rising Total Liabilities Warrant MonitoringAlthough leverage is low today, the noted growth in total liabilities could reflect increased payables, short-term borrowings, or contingent obligations. If liabilities grow faster than equity or cash generation, financial flexibility and margin of safety decline, which could pressure the balance sheet during industry downturns.