High LeverageSignificantly higher net debt increases financial burden and reduces flexibility for cyclical investments. Elevated leverage heightens refinancing and interest-rate sensitivity, raising risk that capital-intensive initiatives or poor harvests could strain liquidity over the medium term.
Weak Cash ConversionLow operating cash conversion and negative free cash flow growth signal that reported earnings are not translating reliably into cash. This constrains capacity to fund capex, irrigation rollout, debt reduction, or buybacks without raising additional debt or diluting equity.
Crop And Climate Exposure (cotton)Concentration in weather-sensitive crops creates structural revenue and margin volatility. Drought-driven underperformance in cotton highlights persistent climate risk that can depress unit economics and require sustained capital expenditure (irrigation) to fully mitigate across regions.