Millennium Post

Poll indicates demand revival, no change in investment plans

The survey has also indicated the possibility of a revival being seen in the demand within the economy. “The general perception among the Indian industry is that things will improve in the next six months in terms of better sales realisation and improved order books, reflecting a sense of hope and optimism,” the Bizcon Survey by Assocham said. “With regards to the expected order book position in the April to June 2015 quarter majority (60.9 per cent) of the firms seem to be optimistic and expect an increase in the orders. Thus, there are some indications of a possibility of a revival being seen in the demand within the economy,” it said. 

As many 39.1 per cent respondents believe that April to June 2015 quarter won’t see any change in their domestic investment plans, Assocham President Rana Kapoor said. Similar feeling is reflected in the international investment perspective for the April-June quarter as majority respondents (43.5 per cent) indicate that no change will be there in the investment plans. The survey done in the last week of March, sought India Inc’s views on the outlook for next quarter and six months.

“Thus there is that sense of hope and optimism that seems to be growing within the industry,” Assocham said. Majority of respondents believe that profit margin has remained same during January-March 2015. However, survey results indicate that 43.5 per cent of the respondents feel that their profits will increase in the short term. “Thus, it is clear that the industry needs to be a little more patient when it comes to solid results on the ground. The policies have a lag. Besides, the global economic situation makes a difference, while the recovery seems to be coming from the domestic demand pick up,” Kapoor said. 

As many as 65.2 per cent of the respondents expect that during April-June 2015 their sales volume will further increase. However, when it comes to profits, lesser percentage of respondents (43.5 per cent) feel that their bottomline will further increase in the short term. On the other hand, respondents who expect the profit margin will remain same have declined from 39.1 per cent during January-March 2015 to 21.7 per cent during April-June 2015. Thus, the March 2015 round survey indicates that firms are optimistic about their future profitability. Besides, sizeable number of industry leaders expect that raw material prices in the April to June 2015 quarter won’t increase further. But the wage costs might rise. In terms of policy parameters, investment on infrastructure comes on top of the priority list of industry leaders, followed by effective policy reforms, clearance of pending projects and stable foreign exchange rates. Inflation does not seem to be a big concern at this point of time, the survey found. 
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