CFOs optimistic about economy and business growth in FY22: Deloitte survey

Our Bureau | | Updated on: Nov 29, 2021
image caption

‘Covid has completely revolutionised the way businesses were operating in India’

The uncertainty associated with the Covid pandemic is reducing with the economy gradually reopening and there is a willingness to invest, according to CFOs’ perception survey by Deloitte.

Many CFOs are focussing on post-pandemic opportunities and challenges, said Deloitte Touche Tohmatsu India LLP’s (Deloitte India) annual ‘CFO Survey 2021: A resilient India is poised to thrive in the New Normal’.

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

Porus Doctor, Asia Pacific CFO Program Leader, and Partner, Deloitte India, said Covid 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 with the ‘new normal’.

Great optimism

The survey found great optimism among business leaders to recover and thrive by converting challenges into opportunities, he said. About 70 per cent respondents expect the economy to clock a growth rate of 5-10 per cent or more in FY22. Not every business though 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 auto industry, which was severely affected by the pandemic, is skeptical about growth prospects. Only 36per cent expect to record any revenue increase in the current financial year.

Is the economic recovery V, K or W shaped?

Overall, the Deloitte India 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 cautionand 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.

Post-pandemic, paper sector on the path to recovery

To thrive in a competitive post-Covid world, CFOs have started resetting their priorities. Apart from revenue growth (20 per cent) and margin improvement (18 per cent), they are actively reassessing their priorities to create a conducive environment for growth.

Amid the need for agility and automation, enhanced customer experience and protection against cyber and data security threats, digital and finance transformations (17 per cent) were rated among the top priorities for an organisation.

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.

Published on November 29, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you