With the economy gradually reopening, CFOs’ perceptions of the pandemic’s uncertainty are diminishing. According to Deloitte Touche Tohmatsu India LLP’s (Deloitte India) annual “CFO Survey 2021: A resilient India poised to thrive in the New Normal,” there is a willingness to invest.
Furthermore, many CFOs are concentrating their efforts on post-pandemic prospects and difficulties. M&A was seen as a significant growth driver for FY22, with 88 % CFOs interested in developing sophisticated asset expansion strategies (both offensive and defensive).
-In FY22, about 70% of respondents predict the economy will grow at a 5-10% rate or higher. However, not every company was able to navigate through these trying circumstances effectively. Nearly one-fifth of automobile companies are pessimistic, with some predicting negative economic growth.
-The auto sector, which was hit hard by the pandemic, is pessimistic about its prospects for growth. Only 36% expect to see an increase in sales in the current fiscal year.
-Overall, the Deloitte India survey found that income and spending increases are increasing. In FY22, over 77% of CFOs anticipate a rise in revenue.
-People are still exercising caution and taking preventive medication, so those in the Life Science and Healthcare (LSHC) field are particularly confident.
-However, 61% of respondents expect a rise in operating expenses due to changes in business strategies, workforce spending, and debt costs.
-CFOs have begun redefining their priorities to succeed in a competitive post-COVID-19 world. They are continually reassessing their priorities to create a suitable atmosphere for growth, in addition to revenue growth (20%) and margin improvement (18%).
-Digital and finance changes (17%) were ranked among the top priorities for an organisation, alongside the need for agility and automation, improved customer experience, and protection against cyber and data security threats.
“COVID-19 has completely revolutionised the way businesses were operating in India. With most 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,” said Porus Doctor, Asia Pacific CFO Program Leader, and Partner, Deloitte India.