Negative Net IncomeRecurring negative net income undermines retained earnings and limits the firm's capacity to self-finance expansion or deleveraging. Over months this constrains strategic investments, reduces ability to build reserves, and pressures management to cut costs or seek external capital.
Elevated LeverageModerate-to-high leverage raises fixed interest obligations and reduces financial flexibility. In a capital-intensive sector like cement, elevated debt increases refinancing and interest-rate sensitivity, constraining long-term investment plans and raising vulnerability to margin compression.
Inconsistent Free Cash FlowVariable free cash flow signals uneven ability to convert EBITDA into incremental liquidity after capex. This makes sustained capex, debt paydown, or shareholder returns harder to plan and may force reliance on external financing, weakening long-term capital allocation.