Cash-Flow VolatilityIrregular cash conversion and episodic negative free cash flow raise liquidity and working-capital risks. Project milestone timing, receivable collection, or inventory/advance payments can force short-term funding, constrain payout capacity, and increase reliance on external financing during growth phases.
Rising Absolute DebtAn increase in nominal debt levels, even with low reported leverage, can raise interest costs and reduce cushion for cyclical stress. If cash conversion remains uneven, higher absolute debt may limit strategic flexibility, heighten refinancing needs, and elevate risk if growth requires incremental borrowing.
EPC Concentration & Execution RiskA business model concentrated on project-based EPC work creates revenue lumpiness and exposes margins to execution, supply-chain and bidding competition. Dependence on tender wins and timely commissioning makes medium-term cash flows and margin sustainability sensitive to project delays and commodity price swings.