Today, the Reserve Bank released results of the 40th round of the Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the quarter October-December 2017 covering 940 manufacturing companies. The survey provides a snapshot of demand conditions in the Indian manufacturing sector1. Highlights: 1) Capacity Utilisation (CU): At the aggregate level, CU stood at 74.1 per cent in Q3:2017-18 with a coincident uptick in the de-trended index of industrial production2 (IIP) (Chart 1). Seasonally adjusted CU also increased for the first time in FY:17-18 to reach 74.3 per cent in Q3:2017-18. 2) Order Books: New orders received by companies in Q3:2017-18 recorded a substantial growth over their levels in the previous quarter and also a year ago (Chart 2). 3) Finished Goods Inventory (FGI) to Sales Ratio: A slight pile up in the finished goods inventory may reflect higher anticipated sales; the FGI to sales ratio declined marginally (Chart 3). 4) Raw Material Inventory (RMI) to Sales Ratio: RMI to sales ratio also declined from its elevated level seen in Q1:17-18.
ANNEX 1: Data Tables | Table 1.1: IIP*-Manufacturing and Capacity Utilisation (CU) | | Quarter | Number of responding companies | Capacity Utilisation | IIP-Manufacturing
(Quarterly Average) | De-trended Quarterly IIP-Manufacturing | | Q3:2016-17 | 710 | 71.0 | 119.5 | -1.8 | | Q4:2016-17 | 724 | 74.6 | 125.2 | 2.8 | | Q1:2017-18 | 805 | 71.2 | 121.1 | -2.3 | | Q2:2017-18 | 756 | 71.8 | 123.0 | -1.4 | | Q3:2017-18 | 940 | 74.1 | 127.8 | 2.4 | | *: Index of Industrial Production (Base: 2011-12) |
Table 1.2: Order Books (Q3:2016-17 to Q3:2017-18)
(Based on common set of 118 companies in 9 quarters)** | | Quarter | Amount (₹ Billion) | Q-o-Q Growth (%)*** | Y-o-Y Growth (%) | | Average Backlog Orders | Average New Order Book | Average Pending Orders | Average Backlog Orders | Average New Order Book | Average Pending Orders | Average Backlog Orders | Average New Order Book | Average Pending Orders | | Q3:2016-17 | 1.242 | 1.357 | 1.205 | -3.0 | 6.0 | -3.0 | -14.0 | -4.7 | -21.6 | | Q4:2016-17 | 1.205 | 1.540 | 1.060 | -2.9 | 13.5 | -12.1 | -21.7 | 23.9 | -15.3 | | Q1:2017-18 | 1.059 | 1.583 | 1.128 | -12.1 | 2.8 | 6.5 | -15.3 | 14.1 | -11.8 | | Q2:2017-18 | 1.128 | 1.736 | 1.398 | 6.5 | 9.7 | 23.9 | -11.9 | 35.7 | 12.6 | | Q3:2017-18 | 1.398 | 2.101 | 1.853 | 24.0 | 21.0 | 32.5 | 12.6 | 54.9 | 53.8 | **: As required for calculating growth rates in recent 5 quarters.
***: Not seasonally adjusted |
Table 1.3: Average Sales and Inventories (Q3:2016-17 to Q3:2017-18)
(Based on common set of 302 companies in 5 quarters) | | Quarter | Amount (₹ Billion) | Ratio (per cent) | | Average Sales | Average Total Inv | Average FG Inv | Average WiP Inv | Average RM Inv | Total Inv /Sales | FG Inv /Sales | RM Inv /Sales | | Q3:2016-17 | 2.822 | 1.612 | 0.582 | 0.248 | 0.782 | 57.1 | 20.6 | 27.7 | | Q4:2016-17 | 3.079 | 1.573 | 0.588 | 0.230 | 0.756 | 51.1 | 19.1 | 24.5 | | Q1:2017-18 | 2.738 | 1.656 | 0.574 | 0.235 | 0.846 | 60.5 | 21.0 | 30.9 | | Q2:2017-18 | 2.727 | 1.603 | 0.588 | 0.239 | 0.776 | 58.8 | 21.6 | 28.5 | | Q3:2017-18 | 2.808 | 1.624 | 0.599 | 0.247 | 0.778 | 57.8 | 21.3 | 27.7 | | RM - Raw Material; WiP - Work in progress; FG - Finished Goods; Inv – Inventory. |
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