Chief financial officers in the country are most confident compared to their peers in Asia Pacific with 93 per cent of them expecting better revenue growth this year, a global CFO survey said today.
"Around 93 per cent of CFOs from the country -- 69 per cent of the total or 75 polled are from foreign companies -- expect revenue growth this year, up from 76 per cent in 2014, which is the highest rate in the Asia Pacific region.
"Also, 85 per cent of them anticipate profit growth in 2015 versus 72 per cent last year, against an average of 73 per cent in the region," Bank of America-Merrill Lynch said quoting its survey today.
Most of the CFOs polled, especially those from the MNCs, are also aggressive on expansion.
Investing to grow revenues is a priority for 89 per cent of them at MNCs, which again is the highest in the region, followed by 73 per cent wanting to expand into new markets, and thus being ready for pumping more capital, the survey said, adding the regional average is only 58 per cent.
"Over the last 12 months, business sentiment has improved and companies are shifting gears from battling a slowdown to preparing for a growth phase," said BofA-ML India managing director and head of corporate banking Kavish Arora said.
With the government focusing on infrastructure spending and resolving to push through policy reforms, companies are hopeful that the investment cycle will revive. With easing inflation levels, lending rates will likely soften and provide a further impetus to corporate profitability and recovery, he added.
According to the report, 69 per cent of the domestic CFOs will consider doing M&As this year 2015, which was just 22 per cent last year, and an average of 37 per cent in the region.
Out of this, as many as 36 per cent are looking at major deals, which again is the highest in the region.
The BofA-ML polled 630 CFOs from across Asia-Pacific for the survey, out of which 12 per cent or 75 were from the country.
