Dun & Bradstreet Composite CFO Optimism Index Q2

Dun & Bradstreet Composite CFO Optimism Index increased by 7.1% on a q-o-q basis

Optimism level for financial performance of the company highest in five quarters in both the sectors

Mumbai, May 7, 2019: Dun & Bradstreet, the world’s leading provider of global business information, knowledge and insight conducted a pan India survey of Chief Financial Officers (CFOs) in which they were asked about their confidence in the overall financial and macro-economic conditions for Q2 2019 (Apr-Jun of the calendar year 2019), as compared to the same quarter of the previous year. 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.

The survey revealed interesting facts about CFOs’ perspective on the overall business climate in the country:

• The Composite CFO Optimism Index increased by 7.1%, on a q-o-q basis, to 103.5 during Q2 2019 and by 7.9% on a y-o-y basis

• Increase in optimism was steeper for financial performance of the company (9.8%; q-o-q) than macroeconomic scenario (3.2%; q-o-q)

• 59% of CFOs expect an increase in the liquidity position of their companies - highest in 10 quarters

• 27% of CFOs expect cost of raising funds to decrease - highest in five quarters

• 29% of CFOs in the industrial sector expect the level of financial risk on company’s balance sheet to decrease – highest in eight quarters

• 46% of CFOs indicated overall scenario for mergers & acquisitions to be favourable during Q2 2019 – highest in three quarters

• 85% of CFOs expect the level of financial risk for corporate sector as a whole to remain unchanged or unfavourable in Q2 2019, while 15% of CFOs expect it to be favourable

• 13% of CFOs indicated expansionary priorities* to be their strong priority for the next six months – highest in four quarters

• Percentage of CFOs stating effective portfolio management (26%) and tightening credit appraisal mechanisms (27%) to be their risk management tool in the next six months is the highest in four quarters