MUMBAI: A large majority of CEOs in India – 86% – predict that the recession will impact corporate earnings by up to 10% next year. In this year’s KPMG India CEO Outlook, in which over 125 CEOs in India discussed their strategies, 66% expect a recession next year, but 58% of executives expect the recession to be “mild and short”.
According to the results, 62% of CEOs in India believe a recession will upend expected growth, with around a third of CEOs saying their companies have also implemented a hiring freeze. In the longer term, however, 79% of CEOs expect their organization to increase their headcount over the next three years.
“Be it the business ecosystem, the supply chain, or talent-related issues, the nature and scale of these challenges have changed dramatically, and how agile business leaders respond is critical. Surveyed CEOs in India appear confident in their company’s resilience, they also appear to have prepared to make the best of the current environment brought about by the promise of technology, talent and ESG,” said Yezdi Nagporewalla , CEO of KPMG in India.
Executives in India exude more confidence in the resilience of the global economy over the next six months (82% CEOs in India vs. 73% CEOs worldwide) than in February 2022 (40% CEOs in India vs. 60% CEOs worldwide). ) when KPMG surveyed 500 CEOs for its CEO Outlook Pulse survey.
Sunil Kataria, CEO of
‘s Lifestyle Business, said Indian companies’ resilience to global macro factors has increased significantly as the Covid shock served as a detox for all businesses, leading to the elimination of cost inefficiencies and the creation of more optimal future practices and processes such as the adoption of digital technologies and identifying new growth vectors that can balance core business models.
https://economictimes.indiatimes.com/markets/stocks/earnings/ceos-expect-10-hit-to-profit-from-a-recession/articleshow/94904844.cms Recession impact on earnings: CEOs expect 10% hit to profit from a recession