CNBCTV18-CII CEO snap poll: More than 50% expect business normalcy in 6-12 months; want calibrated exit from lockdown
Around 71 percent of the CEOs said layoffs were not imminent in their organisations.
The CNBCTV18-Confederation of Indian Industries (CII) snap poll of CEOs reveals that 77 percent of the chief executives want a calibrated exit from the the nationwide lockdown that came into effect from March 24. A short while back, the Home Ministry said that the lockdown would be extended for two more weeks beyond 4 May.
A graded exit from the lockdown would be good for their businesses, felt 86 percent of the CEOs polled.
In our CEO poll with @FollowCII that surveys 250 CEOs across India, 86% of them have seen a gradual exit from the #Lockdown to positively impacting their businesses#COVID #CoronavirusOutbreak #StayHome #RestartingIndia pic.twitter.com/65JaeAmGy3
— CNBC-TV18 (@CNBCTV18Live) May 1, 2020
On the effectiveness of India's COVID-19 strategy, 73 percent of the respndents said that it has been successful so far.
Return to normalcy
More than half the respondents--54 percent--said they expected their businesses to return to normal in six months to a year. Another 16 percent said they expected normalcy to return in less than six months and 29 percent said it would take more than a year for things to get back to normal.
One out of every two respondents said they expected an over 25 percent decline in their topline this year. Four out ten CEOs said the fall in revenues could be between 10-25 percent this year.
On operating margins, 44 percent of the CEOs said they expected a decline of over 25 percent this year. Roughly a similar percentage of CEOs said the decline in margins would be between 10-25 percent.
Hearteningly, 71 percent of the CEOs said layoffs were not imminent in their organisations. There are widespread concerns over job losses given that many sectors have suffered a damage to their very business model since the outbreak of the pandemic.
On wage reduction, 34 percent of the CEOs said salary cuts were imminent in their organisations. Another 37 percent could not say at this point if they would resort to salary cuts.
Social distancing, work from home
An overwhelming nine out of 10 CEOs said their workplaces were equipped for social distancing. Nearly four in ten CEOs said they were taking steps to institutionalise work from home by their employees.
Seven out of ten CEOs say that the lockdown has helped them connect better with their families, and six out of ten CEOs said the lockdown has given them space and time to rethink many aspects of their business.
Six in ten CEOs are expecting major economic reforms in the near future.
Expectations of a recovery in the economy were almost evenly divided. One third of the CEOs said the recovery could be 'convoluted'. Another 28 percent said the recovery was likely to be like a 'Nike Swoosh' and 25 percent expected a 'V-shaped recovery'.
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