CFOs' biz optimism subdued on global, local factors: Dun & Bradstreet

NEW DELHI: Optimism level about business environment among India's Chief Financial Officers for the October-December quarter remained subdued amid global woes, concerns over pace of implementation of various reforms and monsoon deficiency.

According to the Dun & Bradstreet CFO Optimism Index, the optimism level of the CFOs in both industrial and services sector declined both for the macroeconomic condition as well as the overall financial performance of their company.

"Worries about the economic slowdown in China and its potential impact on other Asian economies including India, recent crisis in Europe and volatility in rupee have dented the optimism level of CFOs in the recent period," Dun & Bradstreet India Director - Risk Management Solution Arvind Raghav said.

The index for the fourth quarter declined by around 16 per cent on a year-on-year basis, registering the second consecutive quarter of muted optimism level.

Raghav further noted that "heightened concerns over the pace of implementation of the various reforms committed by the government along with monsoon deficiency have also restrained the optimism levels".

As per the report, 65 per cent of CFOs indicated no change in risk appetite in current scenario, while 57 per cent conveyed no change in the level of financial risks on the company's balance sheet during the fourth quarter in 2015, compared to the year-ago period.

"While optimism levels among the CFOs in the industrial sector remains more downbeat than services sector, majority of the CFOs in the both the segments have indicated no change in the need for raising funds for short term as well as long term as compared to last year," Raghav said.