S N Subrahmanyan, the president of L&T has a surprising suggestion for the government for the upcoming Budget -“be conservative“.
Edited excerpts from the interview:
L&T called demonetisation “disruptive“ and the management sounded more negative than before on its impact during the third-quarter earnings announcement. What is your assessment of its impact?
It is a good decision but there is no full assessment yet as cause and effect varies in different sectors. We were largely a cash economy and some businesses, like electrical and switchgear, were based mostly on cash and have been hurt. Highway toll collection was hurt and so was real estate. The impact is coming from varied directions, some of which we had not expected, and has hit us in the third quarter. It caused some worry but it will settle over time. But the effect will be seen maybe for one or two months more.
Your order growth has been muted. Have challenges on the ground increased?
Buildings business faces challenges as most orders are now government backed, which come with tougher contractual obligations which impact cash flows. Slowdown in IT sector has hurt orders for campus construction. Demonetisation has slowed residential space. Read More…
Latest posts by economictimes.indiatimes.com (see all)
- Railways eliminates 3,402 unmanned crossings in 7 months - November 3, 2018
- This is how the situation looks after Centre’s cut in fuel prices - October 4, 2018
- Centre Gives Rs 2.50 Per Litre Relief on Petrol, Diesel; Some States Announce Additional Rs 2.50 Cut - October 4, 2018