You are here: Home » Companies » News
Business Standard

CFOs optimistic about economy, business growth in FY22: Deloitte India

According to the survey, M&A was considered as a key growth driver for FY22

India's chief financial officers | Deloitte | Companies

Press Trust of India  |  New Delhi 


With the economy gradually reopening, the perception of uncertainty associated with the pandemic is reducing and there is a willingness to invest, says a report.

According to a survey by Touche Tohmatsu India LLP (India), many CFOs are focusing on the post-pandemic opportunities and challenges. About 70 per cent respondents expect the economy to clock a growth rate of 5-10 per cent or more in the current financial year.

The survey was conducted virtually and saw participation from more than 100 CFOs (Chief Financial Officers) across different industries between January to July this year. Respondents included both listed and unlisted that are either Indian or multinational corporations headquartered in India.

However, not every business was fortunate enough to successfully navigate through these uncertain times. Nearly 18 per cent from automotive are not quite optimistic; some also anticipate negative economic growth, the survey noted.

The auto industry, which was severely affected by the pandemic, is skeptical about its own growth prospects. Only 36 per cent expect to record any revenue increase in the current financial year.

Overall, the survey noted an upward trend in revenue and expenditure growth. About 77 per cent CFOs expect an increase in revenue in FY22. Those from the Life Science and Healthcare industry are particularly optimistic as people are still observing caution and taking preventive medication.

On the other hand, 61 per cent respondents foresee an increase in operation expenditure due to changes in business strategies, workforce expenses, and cost of debt.

According to the survey, M&A was considered as a key growth driver for FY22, with 88 per cent of the Indian CFOs being interested in drafting advanced strategies (both offensive and defensive) for expansion of assets.

Besides, to thrive in a competitive post-COVID-19 world, CFOs have started resetting their priorities. "Apart from revenue growth and margin improvement, they are actively reassessing their priorities to create a conducive environment for growth," the survey said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, November 29 2021. 18:08 IST