The corporate sector's performance is expected to witness a significant economic recovery in 2021-22, as per a Confederation of Indian Industry's (CII) CEO Poll.
CII carried out polls with 117 senior CEOs of the country.
As many as 79 percent of the CEOs expected GDP growth to be more than 8 percent.
"The CEOs poll clearly indicates significant recovery in corporate performance with both topline and bottom-line growth expectations to be better than the pre-pandemic levels. The Government’s pro-growth initiatives and announcements have helped nurture the animal spirits of the corporate sector which has seen the worst economic shock of our lifetime", Chandrajit Banerjee, Director General, CII said.
On expected revenue growth of their respective companies, about 46 percent of the polled CEOs expected more than 10 percent growth in the first half of the current fiscal as compared to the first half of pre-pandemic year 2019-20.
"33 percent of them said that their company’s revenue growth will be upto 10% during first half of current fiscal when compared to the first half of pre-pandemic year 2019-20," CII said.
On the net profit growth front, 49 percent of the CEOs indicated more than 10 percent net profit growth during the first half of the current fiscal when compared to the first half of pre-pandemic year 2019-20.
"Yet another 32 percent of them expected their companies to register upto 10 percent growth in net profits for the first half of current fiscal when compared to the pre-pandemic year, 2019-20," the Indian Industry said.
As many as 51 percent of the CEOs indicated at least 5 to 10 percent increase in capacity utilization post second wave as compared to Pre-Covid levels.
"On their respective company’s capacity utilization, about 59 percent of the CEOs polled said that capacity utilization would be at least 5 percent to 10 percent more than the pre pandemic levels," it said.
About 49 percent of the surveyed CEOs have said that their companies are likely to invest in fresh capacity creation this year, while 32 percent of them indicated that their companies are likely to invest in fresh capacity creation in 2022.
51 percent of the surveyed CEOs indicated that Ease of Doing Business was still cumbersome at the grass roots followed by Cost of Doing Business being high, as indicated by 32 percent of the CEOs, CII said."About 70 percent of the CEOs polled expected inflation to be upto 6 percent during the year 2021-22 which is within RBI’s inflation range and should help RBI retain low interest rates to promote growth", CII Director General said.