CEOs expect improved job creation prospects, monetary tightening in H1 FY23: Survey
- The poll, conducted by trade association CII at its Second National Council Meeting for FY23, saw a a participation of 136 CEOs from across the country.
A majority of CEOs expect improved job creation prospects in their companies in the first half of FY23 ending September, CII said on 10 July.
The poll, conducted by trade association Confederation of Indian Industry (CII) at its Second National Council Meeting for FY23, saw a a participation of 136 CEOs from across the country.
"Further, GDP growth is expected to be in the range of 7 per cent to 8 per cent as revealed by 57 per cent of the CEOs while only 34 per cent of them anticipate below 7 per cent expansion in the economy," said CII.
Also, around 49 per cent of the CEOs felt that rural demand would be better in H1 FY23 as against the same period last year.
The outcome reveal that while expectations of monetary tightening are pervasive, given the sharp increase in inflation and heightened inflation expectations, overall outlook for H1 (April-Sept) FY23 looks robust, CII said.
According to the survey 44 per cent of CEOs felt that their company's revenue growth would be in the range of 10 per cent to 20 per cent during first half of FY23, followed by another 32 per cent of the CEOs anticipating a bigger jump in revenues, of more than 20 per cent during the same period, CII added.
While, 45 per cent of the CEOs indicated that their companies' profit growth is likely to increase more than 10 per cent, whereas 40 per cent of them believed that profit growth may stand slightly lower, up to 10 per cent, during H1 FY23.
"The CII CEOs Poll results clearly demonstrate the resilience of Indian industry and the positive business performance outlook both on domestic as well as exports front despite challenges of high inflation leading to monetary tightening, rising input prices and uncertain global economic conditions," said Chandrajit Banerjee, Director General, CII.
The survey revealed 46 per cent of the CEOs polled indicated that rising input prices would affect their profits between 5 per cent and 10 per cent during H1 FY23, followed by another 28 per cent of them who expect a bigger hit to their profits, between 10 per cent and 20 per cent.
However, only 43 per cent of the CEOs indicated that their companies had increased output prices to accommodate the input price rise in recent months, while nearly 57 per cent of them either absorbed the input price rise, and of these about 30 per cent improved efficiency thereby reducing costs of their output.
"On the topic of jobs, a majority of the CEOs expected improved job creation prospects in their companies during H1 FY23 as compared to the same period last year," CII said on the survey findings.
The CEOs have also cited high inflation expectations as nearly 48 per cent see inflation to be in the range of 7-8 per cent during H1 FY23.
"In view of the current stresses, in terms of high input prices and inflation, nearly two thirds of them (64 per cent) are of the view that now the state governments must act to reduce VAT on fuel after the cut in excise duty by the central government in May," said CII.
Though a a large number of the CEOs expect a further depreciation in the rupee and expect it to stand at more than ₹80/US dollar during H1 FY23, a majority of them (55 per cent) also expect their exports to benefit from it and perform better in H1 FY23 versus last year's levels, said CII.
Also, on the internal front about 50 per cent of the CEOs indicated mild to moderate disruption in supply of inputs during the first half of the current year compared to first half of last year.
With PTI inputs.