India Inc Hopes Govt Hits the Ground Running
India Inc is hoping for an improvement in gover nance by the incoming administration. Administrative refor ms could be the first, which should lead to an improvement in asset utilisations and reducing balance sheet stress, which are some of the key takeaways of the Barclays investor conference held on May 21-23, post the election results.
Companies are also hopeful of using equity issuance to fill their funding gaps in the near term. However, they say an investment cycle recovery could take some time and would be dependent on the early policy moves by the government.
TCS reiterated that FY15 would be better than FY14. TCS, Glenmark and Lupin conceded that rapid appreciation of the currency may pressure margins while Godrej is optimistic that the implementation of a GST rollout may bring about more efficient supply chains.