A private survey by analytics firm Dun & Bradstreet (D&B) has stated that the level of optimism about business environment among chief financial officers (CFOs) 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.
According to the survey, the Composite CFO Optimism Index for April-June period of 2015 declined by around 4.9 percent on quarter-on-quarter basis but rose by about 24.5 per cent on year-on-year basis. 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.
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 survey opined that “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.”