Today, the Reserve Bank released the results of the 49th round of the Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the quarter January-March 2020 covering 364 manufacturing companies. The survey provides a snapshot of demand conditions in India’s manufacturing sector1. Highlights: 1) Capacity Utilisation (CU): In the last quarter of 2019-20, CU at the aggregate level increased to 69.9 per cent from 68.6 percent in the previous quarter; it was, however, was much lower vis-à-vis the corresponding quarter a year ago (76.1 per cent). The CU broadly tracks the de-trended index of industrial production (IIP) (Chart 1). Seasonally adjusted CU remained stable at 68.3 per cent in Q4:2019-20 (68.4 per cent in the previous quarter). 2) Order Books: Manufacturing companies received fewer new orders in Q4:2019-20 as compared with their level a year ago; a marginal decline in new orders was also reported vis-a-vs the previous quarter (Chart 2). 3) Finished Goods Inventory (FGI) to Sales Ratio: The FGI to sales ratio remained stable as both FGI and sales recorded similar decline for the reporting companies during Q4:2019-20 (Chart 3). 4) Raw Material Inventory (RMI) to Sales Ratio: The RMI to sales ratio surged during Q4:2019-20 reflecting subdued demand conditions (Chart 3). Historical time series have been made available in excel format.
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 | | Q4: 2018-19 | 802 | 76.1 | 136.5 | 6.10 | | Q1:2019-20 | 781 | 73.6 | 130.3 | -0.94 | | Q2:2019-20 | 819 | 69.1 | 129.4 | -2.66 | | Q3:2019-20 | 700 | 68.6 | 130.8 | -2.07 | | Q4:2019-20 | 349 | 69.9 | 128.1 | -5.58 | | *: Index of Industrial Production (Base: 2011-12) |
Table 1.2: Order Books (Q4:2018-19 to Q4:2019-20)
(Based on common set of 75 companies in 9 quarters)** | | Quarter | Amount (₹ Crores) | 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 | | Q4: 2018-19 | 110.9 | 150.3 | 112.2 | -0.1 | 7.7 | 1.2 | 0.7 | 1.0 | 3.8 | | Q1:2019-20 | 112.0 | 159.1 | 132.5 | 0.9 | 5.8 | 18.1 | 3.1 | 20.4 | 27.3 | | Q2:2019-20 | 132.5 | 138.8 | 138.0 | 18.4 | -12.7 | 4.1 | 27.3 | -7.9 | 24.3 | | Q3:2019-20 | 137.8 | 136.1 | 142.9 | 4.0 | -1.9 | 3.6 | 24.1 | -2.4 | 29.0 | | Q4:2019-20 | 142.3 | 134.5 | 143.0 | 3.3 | -1.2 | 0.0 | 28.3 | -10.5 | 27.4 | **: As required for calculating growth rates in recent 5 quarters.
***: Not seasonally adjusted |
Table 1.3: Average Sales and Inventories (Q4:2018-19to Q4:2019-20)
(Based on common set of 194 companies in 5 quarters) | | Quarter | Amount (₹ Crores) | 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 | | Q4: 2018-19 | 846.0 | 458.1 | 192.2 | 59.9 | 247.1 | 54.1 | 22.7 | 29.2 | | Q1:2019-20 | 826.6 | 480.7 | 146.0 | 63.2 | 271.6 | 58.2 | 17.7 | 32.9 | | Q2:2019-20 | 824.3 | 434.9 | 135.0 | 60.6 | 239.2 | 52.8 | 16.4 | 29.0 | | Q3:2019-20 | 830.0 | 458.8 | 143.4 | 60.0 | 255.4 | 55.3 | 17.3 | 30.8 | | Q4:2019-20 | 756.5 | 447.1 | 130.8 | 38.5 | 278.0 | 59.1 | 17.3 | 36.7 | | RM - Raw Material; WiP - Work in progress; FG - Finished Goods; Inv – Inventory. |
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