Chief financial officers (CFO) of Indian companies are optimistic about the growth of business and economy in FY22, stated a report by Deloitte India. The report found that 88 per cent CFOs were interested in focussing on advanced strategies for expansion. However, some of the executives from the auto industry were not as optimistic, and were even negative about the growth prospects.
The report titled 'CFO Survey 2021: A resilient India poised to thrive in the New Normal’, conducted by Deloitte Touche Tohmatsu India LLP (Deloitte India), found that 70 per cent of respondents expected the economy to clock a growth rate of 5-10 per cent or more in FY22.
Around 18 per cent from automotive companies were not as optimistic; some even anticipated negative growth. “The auto industry, which was severely affected by the pandemic, is skeptical about its own growth prospects. Only 36 percent expect to record any revenue increase in the current financial year,” the report stated.
Porus Doctor, Asia Pacific CFO Program Leader and Partner, Deloitte India, said, “COVID-19 has completely revolutionised the way businesses were operating in India. With most of the organisations trying to adapt to the changing business paradigm, it is important to understand growth areas and align ourselves with the ‘new normal’. During the survey, we noticed great optimism amongst business leaders to recover and thrive by converting challenges into opportunities.”
There has been an upward trend in revenue and expenditure growth, the report stated. As much as 77 per cent CFOs expect an increase in revenue in FY22, while 61 per cent expect an increase in operation expenditure due to changes in business strategies, workforce expenses, and cost of debt.
CFOs from the Life Science and Healthcare (LSHC) industry are particularly optimistic as people are still being cautious and are known to have been taking preventive medication.
The executives have also started reassessing their priorities to create a conducive environment for growth. Revenue growth (20 per cent), margin improvement (18 per cent), and protection against cyber and data security threats, digital and finance transformations (17 per cent) were some of the key priorities.
“The survey indicated that the primary objective for adopting digital in finance was to bring in efficiency in financial processes and significantly enhance the role of finance as business partners. About 57 per cent respondents also believe that the maximum return on investment comes from advanced data analytics,” the report stated.
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