82% of corporate India expects recovery by June 2021: PwC survey
Eighty-two percent of corporate India is expecting to get back to the pre-pandemic revenue run-rates by June 2021, according to a survey conducted by PwC India.
Additionally, 73 percent of the 225 CXO respondents are expecting lower revenues in FY21. According to the report titled ‘Value Conservation to Value Recovery’, only 15 percent are expecting the decline extending to FY22.
Most respondents said that their priorities had evolved from mere survival initiatives such as business continuity and employee well-being to initiatives meant for rebounding. These initiatives include getting demand back and optimising costs.
“Business leaders have adapted well to this unprecedented situation and are optimistic of recovery. We noticed a pragmatic progression in the steps taken by CXOs from ‘repair’ to ‘rethink’ to ‘reconfigure’ in future. In this tougher business environment, digital enablement has become key for remaining competitive and resilient,” said Sanjeev Krishan, Partner and Leader Deals, PwC India.
About 77 percent of the respondent organisations said they would like to spur digital enablement.
While 45 percent respondents are keen to consider acquisitions, 20 percent are considering divesting non-core businesses. About 26 percent respondents would be looking to raise funds.
“We also expect a higher level of collaborations across the value chain. Value creation has become even more critical and deal-making is going to be an important lever. The crisis has brought resilience to the fore and we expect boardrooms to take due cognisance of it,” Krishan added.
According to the survey, sectors such as hospitality, retail, infrastructure, real estate, and media and entertainment have suffered a significant decline in revenue due to the novel coronavirus pandemic and the resultant lockdowns.
The collapse in demand, disruption of supply chains and liquidity constraints were seen as the key reasons for the decline.
The survey’s findings suggest that sectors such as IT, healthcare, pharmaceuticals, telecom, utilities and consumer essentials remained resilient because of “crisis management” and “agility to adapt to the changing market”.
According to PwC India, respondents were a mix of CXOs and senior management from various industries in India. The online survey was conducted between June 17 and July 10, 2020.