Mr. Lav Chaturvedi, one of the leading Business Leader and ED & CEO, Reliance Securities, in a candid discussion with our editorial team.
Q1. Hello Lav, thank you for your time, our readers would like to know how has been your journey so far working with some of the top brands like Nippon Mutual Fund, IPS Sendero and now as CEO for Reliance Securities? What are some of the key learnings for you?
Actually brand doesn’t matter much. Especially in the digital age, their relevance is dwindling significantly. However, it has been truly a humble and satisfying journey so far. Key is to keep focus on creating value for one of the most important stakeholders which is Customer and follow mantra of KISS ( Keep it simple and stupid!)
Q2. In your opinion, how will Indian equity marketsperform in times to come? Do you think India growth story in intact?
We continue to remain positive about equities as key tailwinds for equities are still intact despite ongoing concerns over second wave of COVID-19 crisis. Corporate earnings in March quarter so far have been impressive and healthy earnings recovery for FY22E is still on the cards. We were forecasting ~35% earnings growth for Nifty for FY22E. Notwithstanding some adverse impact on economic activities led by mobility restrictions and night curfews imposed by several states, earnings growth is still expected to remain healthy in FY22E. Notably, record GST collection and sound manufacturing PMI data for April indicate that destruction has not happened in a large way so far, which offer comfort. Additionally, huge capex programme set by the government in the Union Budget for FY22E is still on the cards, which should support earnings growth and premium valuations of market.
Q3. What are some of your observations on the current crisis of Covid 19? What could be some of the key challenges and opportunities for the Indian economy and broking industry in times to come?
Undoubtedly, second wave of crisis appears to be more dangerous as our health infrastructure seems to have collapsed due to rapid rise in daily caseload and higher number of deaths. However, considering huge impact on economy in last year due to nationwide lockdown, government have rightfully not opted for nationwide lockdown this time and have asked states to put mobility restrictions and form containment zones to curb rising number of cases and focus on ramping up vaccination programme. In our view, investors would be keenly watching out vaccination progress and recovery rates in coming weeks. We further note that despite putting enhanced mobility restrictions by states, manufacturing and infrastructure activities have not halted yet and companies have appeared to be proactive this time and convince workers to stay back by offering basic amenities and facilities. Therefore, a large economic damage like last year is unlikely to happen.
With regard to broking industry, we witness tremendous improvement in FY21 in new account opening and trading volumes, despite challenges faced by other industries. We believe penetration in demat accounts is likely to see remarkable improvement in coming years, albeit at lower pace. Systematic Digital Engagement along with pricing, we believe, would be the key driving force for Broking Industry going forward.
Q4. What are your key focus areas for 2021 and coming few years?
From business perspective, three key focus area:
1. Ensure ease of onboarding
2. Ensure equitable investment opportunities for all
3. Building Investors trust.
From personal perspective: to stay away from negative and contribute positively to humans and humanity!
Q5. Our viewers would like to know that as a successful business leader what is your mantra for Success?
Never take short cuts and Be honest. And it’s not brain or luck that matters, at the end of the day, the key differentiator would always be Tenacity!
Q6. While you are a role model for a lot of young professionals however who are your role models or leaders who have inspired you over the period of time?
Martin Luther King, a truly inspiring and transformational leader of all time!!
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