CLSA sees subdued June quarter numbers for most biz after GST implementation

Mahesh Nandurkar of CLSA said as India is expected to usher in the largest-ever indirect tax reform, GST, from July 1, the current trend on inventory de-stocking makes it amply clear that the June quarter numbers for most businesses will be subdued.

He believes business financials will begin to normalise from the September quarter.

Structural benefits of better tax compliance leading to higher tax-to-GDP ratio, seamless trade across the country driving improved logistics and corporate efficiencies, and shift in business from unorganised to organised should be visible with a lag of 3-4 quarters, Nandurkar feels.