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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 Deloitte Touche Tohmatsu India LLP (Deloitte 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 companies that are either Indian companies 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 companies 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.
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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.)
