82 per cent of Indian companies expect that the business conditions are interrupted and not derailed and will recover within a year.
Businesses have faced a major downturn amid the coronavirus pandemic but most of the Indian companies expect that the business conditions are interrupted and not derailed. 82 per cent of companies expect the businesses to recover within a year, according to a PwC report titled ‘Value conservation to value creation’. The report also showed that 73 per cent of the companies expect a decline in revenues in the current fiscal, however, only 15 per cent see the decline extending to the next fiscal. On the other hand, the remaining companies expect to see similar or higher revenues in FY21.
The collapse in demand, supply chain disruption, and liquidity constraints are believed to be the major reason behind the decline in revenue. In another interesting finding, more than three-fourth of the companies expect technology adoption to accelerate while a little more than one-third of the companies recognised the need for collaborations to augment capabilities. It was also found out that the consumer-driven sectors witnessed a sharper decline due to the pandemic but expect a faster rebound.
Interestingly, although the pandemic led to reverse migration from urban to rural centres, organisations do not expect manpower availability to be one of their top challenges. Corporate India is adapting to this challenging environment and despite facing an unknown adversary, business leaders have altered their priorities, adapting their business models according to the evolving situation – from ‘lockdown’ to ‘unlock’ to several localised lockdowns, said Sanjeev Krishan, Partner and Leader, Deals, PwC India.
While near-term issues such as demand weakness, liquidity, disrupted supply chains, and workforce well-being continue to be key concerns, companies are also thinking longer-term on how to reconfigure their businesses and make them resilient to future crises, he added. 95 per cent of the businesses in the capital goods sector expect a decline in their FY21 revenues, with over 70 per cent expecting the decline to be greater than 10 per cent, he further said.