82% CEOs bullish on growth: Survey

Namrata.Singh@timesgroup.com
Mumbai: Most CEOs remain confident about growth prospects of their company. Although at 82%, as revealed by a recent KPMG survey of CEOs’ outlook, the number is marginally lower compared to the 92% level recorded six months earlier in March this year, just before the onset of the second Covid wave.
When it comes to their organisation’s earnings outlook, there is a marginal decline in confidence among CEOs in India.While 96% in March had projected an earnings outlook for their company at 0-2.5% over the next three years, in the latest survey, the percentage for the same earnings growth stands at 95%.
The survey, however, says companies are ready to combat all kinds of risks and disruptions to recover better. The KPMG survey of 125 CEOs, shared exclusively with TOI, said, “CEOs of some of the largest businesses in India are confident and ready for a recovery that is digitally driven and purpose-led to build better and stronger than ever before.”
KPMG India chairman & CEO Arun M Kumar said, while the global crisis has led to a significant decline in confidence in organisational and sectoral growth, CEOs in India — much like their global counterparts — are quite optimistic about the prospects for the global economy. Living through an unprecedented crisis, CEOs had to constantly reassess their strategies for business continuity and growth, said Kumar. With the threat of new variants and advent of a third wave in India expected anytime now, Kumar added, “We may not be back to ‘business as usual’ just yet.” He said, “But what makes me immensely happy is that the CEOs in India are ready to strategise and combat operational risks despite the demanding times. Over a year later, we now have the opportunity to build a stronger, more sustainable future only if we work together and, most importantly, build back better.”
Pidilite Industries MD Bharat Puri said, “With the increasing pace of vaccinations and a good monsoon, we see considerable improvement in consumer sentiment. We remain cautiously optimistic of business returning to normal in the post-Diwali period.”
About 55% CEOs in the survey showed greater confidence in the prospects for the global economy and expressed readiness to combat risks and disruptions to make progress faster. Moreover, 9 out of 10 CEOs in India are slightly more optimistic that the headcount of their organisation will increase over the next three years, and hence are investing more in developing their workforce’s skills and capabilities.
On growth strategies, 35% CEOs believe organic methods (innovation, R&D, capital investment) will be crucial for realising their growth objectives over the next three years. Simultaneously, the appetite for M&As has increased significantly. The percentage of CEOs who said they are likely to undertake acquisitions which have a significant impact on the overall organisation has risen from 26% in March this year to 55%.
The survey also found that leading CEOs (48%) in India are looking to sharpen their digital edge further. And 64% CEOs also said they were prepared for an eventuality like a ransomware attack.
Interestingly, although environmental, social & governance (ESG) is a critical business priority for CEOs in India, the survey shows a dip (at 78%) in focus to shift towards the social component of the ESG programme. This number was slightly higher in March this year at 96%. However, their focus on creating a net-zero future stands strong with 79% of CEOs in India asserting that a government stimulus is required to turbo charge climate investments being made by the business community. With purpose in business also gaining in importance, the survey showed that 66% of CEOs stated this to be their main objective.