There’s no light at the end of the tunnel for India. Not till September, at least, if senior finance executives are to be believed. Most say the country’s macro-economic conditions are likely to be unfavourable or remain unchanged in the July-September quarter, according to a survey.
According to the Dun and Bradstreet India Chief Finance Officer Survey, the optimism level for the overall macro-economic conditions has dipped during the third quarter of 2012, as compared to the previous quarter because of difficult domestic and global conditions.
Around 73% of the surveyed CFOs consider the overall macroeconomic conditions during the third quarter of 2012 to be unfavourable or remain unchanged, an increase of around 24% from the same year’s second quarter indicating weak business sentiment.
The overall CFO optimism level has declined further for the July-September quarter as difficult domestic economic conditions along with prolonged worries over the European debt crisis weigh on overall confidence, Dun Bradstreet India Chief Operating Officer Mohan Ramaswamy said.
Around 72% of the CFOs in the industrial sector expect to undertake business restructuring during this quarter, an increase of 24% over the previous quarter.
In addition, 75% expect financial risk for the corporate sector to remain unfavourable or not change, which is an increase of 15% over the previous quarter.
CFOs expect the level of financial risk for the corporate sector as a whole to increase further during Q3, 2012 as compared to the previous quarter indicating concerns over short-to medium-term recovery, Ramaswamy said.
Around 82% expect the level of financial risk on the company’s balance sheet to either rise or remain unchanged in Q3 2012.
The survey reveals how optimistic CFOs are with respect to the overall financial health of their respective companies, the business risk environment and the macroeconomic scenario in the country.