Bigger cos more optimistic on Q4 than smaller ones: RBI

Bigger companies, with paid-up capital (PUC) of over Rs 100 crore, are more optimistic about their business and financial situations than the smaller ones for the January-March quarter, according to an RBI survey.

"Bigger companies (annual production above Rs 1,000 crore or PUC above Rs 100 crore) are more optimistic about overall business and financial situations. The smaller companies (annual production less than Rs 100 crore or PUC less than Rs 10 crore) are less optimistic," according to the RBI Quarterly Industrial Outlook Survey.

The survey was conducted during October-December 2010.

The smaller companies are less optimistic as their net response on production, order books and capacity utilisation are at lower levels than those of the bigger companies.

"Bigger companies are more optimistic about domestic as well as external demand," it said.

The survey also said the manufacturers expect the growth to moderate in January-March, 2011.

The survey findings exhibit the Indian manufacturing sector continued to gain strength as Business Expectation Index (BEI) for the October-December quarter increased to 122.8 from 119.0.

"However, the sentiment is expected to moderate for the January-March, 2011 quarter with BEI moderating to 125.9 from 126.5 in the the previous quarter," it added.

The index is computed from the responses of all the industries on selected nine performance parameters, including overall business situation, production and order books.

The survey also seeks responses from the manufacturers about their perceptions on change in employment in their companies covering full-time, part-time and casual labour.

"About 25% of the respondents have reported addition to their labour force in October-December, 2010 quarter which is also reflective of growing demand condition," it said.