Operating Cash Flow WeaknessA marked decline in operating cash flow and a low OCF-to-net-income ratio signal weaker cash conversion despite accounting profits. Structural OCF shortfalls can constrain reinvestment, subscription scaling, or increase reliance on external financing, raising execution risk over the coming months.
Rising Total Debt TrendAlthough current leverage is moderate, the noted increase in total debt over time reduces headroom for additional financing and raises interest and refinancing exposure. If cash conversion remains subdued, escalating debt levels could strain liquidity and limit strategic flexibility.
EBITDA Margin PressureA downward drift in EBITDA margin suggests emerging cost pressure or pricing compression in competitive IT services and integration projects. Sustained margin erosion would undermine free cash flow and the company’s ability to fund growth initiatives without sacrificing profitability or increasing leverage.