Good Luck India posted a weak set of first quarter earnings. In an interview to CNBC-TV18, MC Garg, Chairman of the company discussed the details.
There has been demand in market. After demonetisation, there was a terrible pressure on demand. Then some improvement came and unfortunately from middle of May, due to goods and services tax (GST) implementation demand went down and margins came under pressure, he said.
Internationally and domestically, demand is good but products like infrastructure – margins are under pressure. Clients are delaying the payments, he added.
GST is a revolutionary reform in Indian business and I am for it and I think this is one thing which will change the face of business but initial pains are still there, said Garg.
“I am fully confident in the second half, GST is stabilising, good monsoon will boost up the rural demand, the government system will come into place, the money is flowing back into the system. I feel Q2 pain will remain but Q3 onwards, should be a booming time,” he further mentioned.
For full interview, watch accompanying video...
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