Businesses expect recovery by June 2021: PwC Survey

By: |
July 31, 2020 5:30 AM

They attribute this resilience to operational flexibility, robust crisis management and process/product innovation. For many, this is a result of work done in the pre Covid-19 era, he added.

The report suggests that infrastructure, real estate, industrials, retail, hospitality and media & entertainment suffered significant revenue decline due to the crisis. The report suggests that infrastructure, real estate, industrials, retail, hospitality and media & entertainment suffered significant revenue decline due to the crisis.

Though Covid-19 and the ensuing mayhem has left the global and Indian economy battered, a survey by auditing major PwC reveals that more that 80% of business expect markets to recover by June next year as companies focus on crisis management, operational efficiency and innovation.

PwC India surveyed 225 CXOs across industries between June 17 and July 10 to assess the impact of Covid-19, the challenges it poses, new paradigms and interventions being considered by business leaders.

“Despite the near-term challenges on both the demand and supply side, the good news from our survey is that India Inc is optimistic about economic revival. Nearly 80% of the respondents of our survey expect their businesses to recover by June 2021, with early signs expected to be visible from September 2020,” PwC India partner & elder (deals), Sanjeev Krishan wrote in the report’s preface.

They attribute this resilience to operational flexibility, robust crisis management and process/product innovation. For many, this is a result of work done in the pre Covid-19 era, he added.

The report suggests that infrastructure, real estate, industrials, retail, hospitality and media & entertainment suffered significant revenue decline due to the crisis. Collapse in demand, supply chain disruptions and liquidity constraints were the top reasons for decline.

Sectors like IT, healthcare, pharma, telecom, utilities and consumer essentials were somewhat resilient. Crisis management and agility to adapt to the changing market were the key for resilience, it added.

An overwhelming 77% of respondents would like to accelerate digital enablement. Other significant interventions anticipated include localisation of manufacturing/supply chains, development of newer logistics models, collaboration to add capabilities & navigate bottlenecks and development of newer products & services centred around emerging themes & affordability.

Encouragingly, for 45% of the respondents, the current crisis presents opportunities to consolidate. These opportunities may not be sector-specific, as consolidation has been a buzzword over the last few years, driven by favourable policy actions such as the Insolvency Code.

“CXOs were asked about their definition of success out of Covid-19. Here 34% would like their organisation to be more resilient followed by 19% who wanted to gain/ protect market share and 19% who wanted to achieve break even cash flows,” the report revealed.

“In this tougher business environment, digital enablement has become key for remaining competitive and resilient. 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 said.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Shaktikanta Das says economic recovery stronger than expected; surge in coronavirus poses downside risks
2GST officials catch massive tax fraud of Rs 2,350 crore, fake invoices, ITC claims
3Recession to end soon: Indian economy to recover early next year as vaccine progresses