Negative Free Cash FlowPersistent negative free cash flow limits the company’s ability to fund capex, inventory build, or dividends from operations. Over a multi-month horizon this increases dependence on external funding and constrains strategic investments or buffer against demand shocks.
Declining Operating MarginsErosion in gross and operating margins points to cost pressures or pricing limits in the saree market. Reduced operating leverage lowers sustainable profitability and cash generation, making it harder to improve free cash flow without structural cost or pricing fixes.
High Liabilities Vs AssetsDespite ratio improvements, a high absolute liability load raises refinancing and interest-rate vulnerability. If revenue or margins weaken, servicing liabilities could strain liquidity and limit the company’s ability to pursue growth or absorb operational setbacks.