Thursday, 20 July 2017

Move to GST is positive; see normalcy in coming quarters: Havells India

Havells India posted disappointing numbers for Q1FY18. The operational front performance was weak. “This was a special quarter because of the transition of value added tax (VAT) regime to the goods and services tax (GST) regime. Things should come back to normal in the coming quarters,” Anil Rai Gupta, CMD of Havells India told CNBC-TV18.

Havells India posted disappointing numbers for Q1FY18. The operational front performance was weak.

“This was a special quarter because of the transition of value added tax (VAT) regime to the goods and services tax (GST) regime. Things should come back to normal in the coming quarters,” Anil Rai Gupta, CMD of Havells India told CNBC-TV18.

The whole quarter was marred by the GST transition. The company saw huge destocking at the trade level in the month of May and June which has brought down the sales of high margin products.

It is too early to judge GST impact in July, it might take a month or two for things to normalise, he said.

According to him, the growth in cables is transitional. It is due to some preponement of the cable and wire demand because of the higher GST rate coming from the month of July, he added.

Don’t see any change in the trade set up, over a period of time this whole move to GST is positive and should generally improve the industry sentiment over the longer period of time. It should improve the overall demand cycle in coming futures, he further mentioned.

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