 "CFO")
Optimism level among India's chief financial officers during July-September touched a one and half year low amid concerns related to subdued demand and strain on corporate balancesheet, found out a survey.
The Composite CFO Optimism Index for the September quarter of this year declined by 11 per cent year-on-year and by 5.7 per cent on a quarter-on-quarter basis.
Optimism among the CFOs (chief financial officers) deteriorated more for the financial performance of their companies compared to overall macroeconomic conditions .
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"Concerns related to subdued domestic and weak external demand, strain in the corporate balancesheet, stressed assets in the banking system and the pressure on public finances appear to have contributed to the lower optimism level," said Manish Sinha, Managing Director - India, Dun and Bradstreet.
Further, strain on the corporate balancesheet has added to the already weak risk appetite of the CFOs. Consequently, their expansion plans remain muted, which also has an impact on the optimism score.
Sinha further noted that looking forward, "remonetisation measures, restocking post GST implementation, the onset of the festive season, state pay commission hikes and the lower lending rates might result in some tailwinds for the CFO Optimism scores".
The 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.
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