The level of optimism about business environment among chief financial officers in the country declined in April-June period largely owing to slower pace of reforms than initially expected and weak profit level of the corporates, says a report.
According to a survey by analytics firm Dun & Bradstreet, the CFO Optimism Index has registered a decline for the third consecutive quarter, but remained high on yearly basis.
The Composite CFO Optimism Index for April-June period of 2015 declined by around 4.9 per cent on quarter-on-quarter basis but rose by about 24.5 per cent on year-on-year basis.
"The optimism level among the CFOs has failed to revive for the third consecutive quarter as optimism pertaining to the domestic macroeconomic scenario remains dented," Dun & Bradstreet India Director - Risk Management Solution Arvind Raghav said.
Majority of CFOs expect level of financial risks on the company's balance sheet and risk appetite to remain unchanged during April-June quarter of 2015.
"Slower pace of reforms than initially expected, weak profit level of the corporates, non-revival in the demand conditions, policy logjam in upper house coupled with a tepid global recovery have led to the weak sentiment among the CFOs," it said.
While the optimism level of both services and industrial sectors moderated during the second quarter of 2015, the optimism level of the services sector moderated strongly than the industrial sector.
The D&B India's CFO survey reveals how optimistic the CFOs are with respect to the overall financial health of their respective companies, the business risk environment and; the macroeconomic scenario in the country.
Image: April-June was a dull quarter for India Inc.
Photograph: Reuters
