The chief financial officers CFO of Indian companies are optimistic about the growth of business and economy in FY22, according to a report by Deloitte India. 88 per cent of CFOs were interested in advanced strategies for expansion, according to the report. Some of the auto industry executives were not as optimistic and even negative about the growth prospects.
According to a report titled 'CFO Survey 2021: A resilient India poised to thrive in the New Normal, 70 per cent of respondents expected the economy to clock a growth rate of 5 -- 10 per cent or more in FY 22.
Some of the automotive companies did not believe in negative growth, and about 18 per cent were not as optimistic. The auto industry, which has been severely affected by the Pandemic, is skeptical about its own growth prospects. The report stated that only 36 percent of the population is expecting to record any revenue increase in the current financial year.
Porus Doctor, Asia Pacific CFO Program Leader and Partner, Deloitte India said COVID 19 has completely revolutionised the way businesses are 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. Revenue and expenditure growth has gone up as well, according to the report. As much as 77 per cent of CFOs expect an increase in revenue in FY22, while 61 per cent expect an increase in operational expenditure due to changes in business strategies, workforce expenses, and cost of debt.
CFOs from the Life Science and Healthcare Life Science and Healthcare LSHC industry are optimistic as people are still cautious and have been taking preventive medication.
The executives have 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 priorities.
The survey indicated that the primary objective of adopting digital in finance was to bring inefficiencies in financial processes and to improve the role of finance as business partners. According to the report, 57 per cent of respondents believe that the maximum return on investment comes from advanced data analytics.