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Source: cision | Published on: Monday, 06 May 2024
Financial optimism is rising as liquidity concerns ease
MUMBAI, India , May 6, 2024 -- A recent survey of Chief Financial Officers (CFOs) in India, conducted by Dun & Bradstreet India, a leading global provider of business decisioning data and analytics, found that CFOs' confidence in financial conditions and macro-economic conditions has improved significantly compared to same period previous year.
Key findings from the survey:
The Dun & Bradstreet India Composite CFO Optimism Index analyses the optimism level of CFOs on 12 parameters: operating margin, liquidity position, level of financial risk on company's balance sheet, risk appetite, need for raising short-term and long-term funds, cost of raising funds, availability of funds, domestic and global macroeconomic scenario, overall scenario for mergers and acquisitions, and level of financial risks for businesses.
Commenting on the findings of the survey, Dr. Arun Singh, Global Chief Economist, Dun & Bradstreet, said, "India's financing landscape and the financial performance of businesses continue to exhibit strength, with the financing optimism index rising by 9.4% in Q2 2024, contrasting the global trend of stagnation observed in D&B's Global Business Financial Confidence Index. Despite liquidity pressures prevailing in global markets, India remains a beacon of stability, boasting its highest liquidity levels in 13 quarters. Our survey underscores businesses' confidence in managing balance sheet risks, driven by lower funding costs despite high interest rates. Increased demand visibility in the near term, coupled with lower input costs, enhances cash flow generation, fostering confidence among firms to utilize higher short-term funds for working capital needs. Among sectors, the services sector exhibits greater confidence than industrials, buoyed by stronger-than-expected export performances. Conversely, the industrial sector is cautious about the potential reversal of lower input costs and forthcoming supply chain challenges in the near-to-medium term."
About the Dun & Bradstreet India Composite CFO Optimism Index
The Dun & Bradstreet India Composite CFO Optimism Index, which has been tracking the changing sentiment of CFOs since 2012, is a leading indicator of the Indian financial market as it helps in predicting the performance of the Sensex three months in advance.
A sample of companies belonging to basic goods, capital goods, intermediate goods, consumer durables, consumer non-durables and the services sector is selected randomly from Dun & Bradstreet's commercial credit information file. The sample selected is representative of India's business community. All the respondents in the survey are asked a set of questions regarding the financial performance of their companies and the overall macroeconomic scenario for the corporate sector in the forthcoming quarter. The CFOs are asked to state their expectations as to whether the specified parameters pertaining to their respective companies and the overall macroeconomic scenario will register an increase, decrease, or show no change in the ensuing quarter as compared to the same quarter in the previous year. Two broad indices, optimism at the company level and optimism at the macroeconomic level, each consisting of eight and four sub-parameters respectively, are then designed.
About Dun & Bradstreet:
Dun & Bradstreet, a leading global provider of business decisioning data and analytics, enables companies around the world to improve their business performance. Dun & Bradstreet's Data Cloud fuels solutions and delivers insights that empower customers to accelerate revenue, lower cost, mitigate risk and transform their businesses. Since 1841, companies of every size have relied on Dun & Bradstreet to help them manage risk and reveal opportunity. For more information on Dun & Bradstreet, please visit www.dnb.com.
Dun & Bradstreet Information Services India Private Limited is headquartered in Mumbai and provides clients with data-driven products and technology-driven platforms to help them take faster and more accurate decisions across finance, risk, compliance, information technology and marketing. Working towards Government of India's vision of creating an Atmanirbhar Bharat (Self-Reliant India) by supporting the Make in India initiative, Dun & Bradstreet India has a special focus on helping entrepreneurs enhance their visibility, increase their credibility, expand access to global markets, and identify potential customers & suppliers, while managing risk and opportunity.
India is also the home to Dun & Bradstreet Technology & Corporate Services LLP, which is the Global Capabilities Center (GCC) of Dun & Bradstreet supporting global technology delivery using cutting-edge technology. Located at Hyderabad, the GCC has a highly-skilled workforce of over 500 employees, and focuses on enhanced productivity, economies of scale, consistent delivery processes and lower operating expenses.
Visit www.dnb.co.in for more information.
Click here for all Dun & Bradstreet India press releases.
Dun & Bradstreet Contact: Kaustav Bhattacharya
Email: BhattacharyaK@DNB.com
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