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Business News/ Companies / News/  Indian CFOs bullish on profit growth: BoFA survey
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Indian CFOs bullish on profit growth: BoFA survey

Many CFOs feel political change after general elections will have positive impact on the Indian economy

Survey says around 72% of the 80 India CFOs surveyed expect profit growth in the current fiscal, while 76% expect revenue growth as well. Photo: BloombergPremium
Survey says around 72% of the 80 India CFOs surveyed expect profit growth in the current fiscal, while 76% expect revenue growth as well. Photo: Bloomberg

Mumbai: Chief financial officers (CFOs) at Indian companies are bullish about profit growth, as many say political change after the Lok Sabha elections will have a positive impact on the economy, according to the Bank of America (BoFA) CFO Outlook Asia Survey.

The survey results, released on Tuesday, said around 72% of the 80 India CFOs surveyed expect profits to grow in the current fiscal year, while 76% expect revenue to grow too. “A slowing economy and rising costs have impacted margins, but the ongoing optimism of India’s CFOs reflects the fundamental, long-term strength of the economy," said Kavish Arora, India head of corporate banking at Bank of America.

Smart companies have mastered the art of managing in a downturn, and the broader economic environment is expected to turn positive after the general elections and as interest rates ease in the second half, he added.

The Indian economy grew at 4.7% in 2012-13, the slowest in a decade, while the rupee touched an all-time low of 68.85 per dollar on 28 August 2013.

The respondents said that a slowing economy and currency volatility were the two biggest risks they faced. The survey results also show that increasing operational efficiency and improving working capital management will be key in improving profitability for CFOs.

The survey results point to a muted growth in merger and acquisition opportunities in the country. Around 55% of the respondents said they do not intend to undertake any M&A during the year (2014-15) while 25% said they would look at small and mid-sized deals.

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Published: 30 Apr 2014, 12:30 AM IST
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