July 14, 2024


Delighting finance buffs

Most firms to face 10 per cent revenue loss due to Covid-19: CII poll

At least 52 per cent of the respondents said there will be many layoffs due to lower revenues. Nearly 200 CEOs across sectors participated in the online survey. 

Several companies have been deeply impacted in the wake of the novel coronovirus pandemic. (Photo: PTI/Representational image)

A recent poll conducted by an industry body suggested that Covid-19 is likely to have a deep impact on Indian businesses.

A snap poll of CEOs, conducted by the Confederation of Indian Industries (CII), indicated that there could be a revenue fall of more than 10 per cent for most firms due to the impact of Covid-19.

At least 52 per cent of the respondents said there will be job losses as well. Nearly 200 CEOs across sectors participated in the online survey.

The poll also showed that a significant majority of the firms expect profits to decline more than five per cent in the last quarter of 2019-20 and the ongoing April-June quarter.

Almost 80 per cent said their inventory was lying idle due to the restrictions. But 40 per cent believe that inventory will remain idle even a month after the lockdown ends as the demand slowdown is expected to continue.

During the lockdown, most firms engaged in the production of essential products and supply of other additional goods have taken an operational hit due to manpower constraints.

Many firms have planned layoffs to cope with financial losses due to the novel coronavirus outbreak. At least 47 per cent expect less than 15 per cent job losses in their respective companies, while 32 per cent said they expect 15-30 per cent layoffs after lockdown ends.

Chandrajit Banerjee, Director General, CII, said, “The government could announce a fiscal stimulus package for the industry and implement it on fast track mode, given that the sudden imposition of the lockdown has significantly impacted industry operations.”

“The uncertainty of a recovery threatens substantial loss of livelihoods going forward,” he added.

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