Dividends could be at risk here with lower cash hoard as well as expected larger OCF required for the greenfield projects in the pipeline. What’s your view?
Reply to @tockhuattan : Thanks for your input. Very sensible view on this matter and makes a lot of sense. I guess with the measures put forth by the management will inadvertently improve CF in the short term but may compromise medium and long term growth. Revenue stream is shorter and profit margin will be narrower with brownfield projects as we know. But again there is no silver bullet at current market condition and I am confident that the management is prudent and able to strike a good balance on this...thanks once again.
I would think its a combination of factors. lower gross margins + impairment for receivables that cannot be collected drag down their performance. It would take a while to really see a substantial turnaround
Dividends could be at risk here with lower cash hoard as well as expected larger OCF required for the greenfield projects in the pipeline. What’s your view?
Reply to @tockhuattan : Thanks for your input. Very sensible view on this matter and makes a lot of sense. I guess with the measures put forth by the management will inadvertently improve CF in the short term but may compromise medium and long term growth. Revenue stream is shorter and profit margin will be narrower with brownfield projects as we know. But again there is no silver bullet at current market condition and I am confident that the management is prudent and able to strike a good balance on this...thanks once again.
I would think its a combination of factors. lower gross margins + impairment for receivables that cannot be collected drag down their performance. It would take a while to really see a substantial turnaround
Margin compression is quite a deterrent