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New Delhi , Dec. 21

A MAJORITY of chief executive officers (CEOs), who participated in a snap poll conducted by the Confederation of Indian Industry (CII), expects their companies to register double-digit growth in sales during the current fiscal.

In a statement here, the chamber said that 74 per cent of the CEOs expected their company's sales to grow by more than 10 per cent during 2003-04. Besides, 35 per cent expect the growth in sales to be between 10 per cent and 20 per cent, while 13 per cent expect a sales growth between 20 and 30 per cent.

On the more optimistic side, 13 per cent of the participating CEOs look for a sales growth between 30 and 40 per cent, while nine per cent of them expect the growth to be between 40 and 50 per cent and a minority four per cent expect growth of more than 50 per cent. On the contrary, 26 per cent of the respondents saw the growth in sales to be less than 10 per cent.

The poll also shows a similar trend as regards profit growth, with 74 per cent of the respondents indicating that profits would also be in double digits at 10 per cent, while 26 per cent expect growth to be between 10 and 20 per cent. Besides, 13 per cent have stated that growth would be between 20 and 30 per cent, while four per cent of the respondents expect growth to be between 30 and 40 per cent.

Similarly, on the more optimistic side are nine per cent of the respondents who expect the profit growth to be between 40 and 50 per cent and 22 per cent expect profits to grow by more than 50 per cent. With the expected growth in sales, only 26 per cent of the respondents expect growth in profits to be less than 10 per cent.

On the issue of whether the Budget target for a fiscal deficit of 5.6 per cent of the gross domestic product (GDP) would be achieved, 74 per cent of the respondent CEOs felt that the Government would overshoot the target while 13 per cent said that the target would be met and 13 per cent were of the opinion that the fiscal deficit would be less than 5.6 per cent.

When asked whether the forthcoming Budget would bring a reduction in the basic corporate tax rate, 41 per cent felt that the tax rate would be reduced to 30 per cent, while the remaining 59 per cent said that it would remain unchanged at 35 per cent.

Similarly, only nine per cent of the respondents felt that dividend distribution tax would be abolished while 52 per cent felt that it would be reduced and not abolished and 39 per cent felt it would remain unchanged at 12.5 per cent.

On the issue of growth in the Indian economy, more than half of the respondents believed that the economy would post a growth of over seven per cent in the current fiscal. Besides, 26 per cent said that it would be between 6.5 and seven per cent and the remaining 26 per cent felt that growth would be between 6 and 6.5 per cent.

For the next fiscal year (2004-05), 30 per cent of the CEOs stated that the GDP growth would remain above seven per cent, 43 per cent said that it would be between 6.5 and 7 per cent, while 13 per cent of the respondents felt that growth would be between 6 and 6.5 per cent. Only 13 per cent of the respondents felt that the GDP growth would fall below 6 per cent and vary between 5.5 and 6 per cent.

Among those who participated in the poll included the Chairman and Managing Director, Samtel Color Ltd, Mr Satish Kaura, the Group Chairman and Chief Executive, Eicher, Mr S. Sandilya, the Chairman, Godrej Group, Mr Adi Godrej, the Chairman and Managing Director, Godrej and Boyce Manufacturing Company Ltd, Mr Jamshyd Godrej, and the Chairman and Managing Director, Bajaj Auto Ltd, Mr Rahul Bajaj.

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