Indian CFOs optimistic on revenue growth but divided on taking risks

Seventy-four per cent of chief financial officers (CFOs) in India are optimistic about increase in revenues in the next one year, but given the uncertain global economy and growth being concentrated in certain sectors of the domestic economy they are almost equally divided on whether it was the right time to take risks.

The "India CFO Survey 2016" conducted by Deloitte also pointed out that the outlook on operating margins looked uncertain as 48 per cent of the CFOs expect increase in margins while 52 per cent expect a cut or no change in margins. Fifty-eight per cent of the respondents, however, believe their capital expenditure will increase over the next one year, giving credence to the fact that there were some green shoots of recovery in the investment cycle. More than 60 per cent also believe they have seen an improvement in the investment climate over the past one year.

Also, almost 45 per cent CFOs are expecting companies would increase their headcount. The findings show the CFOs were willing to support the government with more time to bring about the structural change that would give growth a more sustainable and meaningful boost, a spokesperson said.