Negative Cash FlowPersistent negative operating and free cash flows highlight cash-generation weaknesses despite revenue and margin gains. Over months this can force external financing for working capital or capex, constrain reinvestment, and expose the business to liquidity and execution risks.
Rising Debt RelianceAn increasing reliance on debt raises leverage and interest burden, reducing financial flexibility. If cash flow remains weak, elevated debt amplifies refinancing and covenant risks, limiting the firm's ability to invest or weather cyclical slowdowns in the textile sector.
Low Net Profit MarginDespite margin improvements, a still-low net profit margin limits retained earnings and buffers against downturns. Over the medium term this constrains internal funding for growth, makes the company more sensitive to cost or price shocks, and weakens long-term cash resilience.