Today, the Reserve Bank released the results of the 55th round of the quarterly Order Books, Inventories and Capacity Utilisation Survey (OBICUS), which provides a snapshot of demand conditions in India’s manufacturing sector1 during July-September 2021. The survey covered 761 manufacturing companies. Highlights: - At the aggregate level, capacity utilisation (CU) for the manufacturing sector recovered to 68.3 per cent in Q2:2021-22 after waning of the second wave of COVID-19 pandemic in the country, which had caused plummeting of CU to 60.0 per cent in the previous quarter (Chart 1).
- Reflecting improved demand conditions, manufacturing companies recorded sequential (Q-o-Q) growth in new orders during Q2:2021-22 (Chart 2). On an annual (Y-o-Y) basis, however, new order growth moderated from the abnormally high growth in the previous quarter, which had large base effect.
- As manufacturing companies maintained broadly similar level of inventories in Q1 and Q2 of 2021-22, improvement in sales during Q2:2021-22 led to sequential decline in the ratios of (a) finished goods inventory (FGI) to sales as well as (b) raw material inventory (RMI) to sales (Chart 3).
Note - Please see the excel file for time series data.
ANNEX 1: Data Tables | Table 1: IIP*-Manufacturing and Capacity Utilisation (CU) | | Quarter | Number of responding companies | Capacity Utilisation | IIP-Manufacturing
(Quarterly Average) | De-trended Quarterly IIP-Manufacturing | | Q2:2020-21 | 563 | 63.3 | 121.2 | -1.9 | | Q3:2020-21 | 610 | 66.6 | 133.2 | 0.1 | | Q4:2020-21 | 557 | 69.4 | 136.5 | 3.8 | | Q1:2021-22 | 640 | 60.0 | 119.1 | -13.5 | | Q2:2021-22 | 728 | 68.3 | 131.1 | -1.8 | | *: Index of Industrial Production (Base: 2011-12) |
| Table 2: Order Books (Q2:2020-21 to Q2:2021-22) | | Quarter | Number of companies | Amount (₹ Crores) | Q-o-Q Growth # (per cent) ** | Y-o-Y Growth # (per cent) | | Average Backlog Orders | Average New Order Book | Average Pending Orders | Backlog Orders | New Order Book | Pending Orders | Backlog Orders | New Order Book | Pending Orders | | Q2:2020-21 | 137 | 146.3 | 184.8 | 154.1 | 0.5 | 108.6 | 5.2 | 6.0 | 10.4 | 8.6 | | Q3:2020-21 | 155 | 181.2 | 242.7 | 194.2 | 0.3 | 15.4 | 7.2 | -13.8 | 22.1 | -7.7 | | Q4:2020-21 | 85 | 199.8 | 243.4 | 196.3 | 7.6 | 2.3 | -1.8 | 7.2 | 32.9 | 2.3 | | Q1:2021-22 | 120 | 188.1 | 171.0 | 197.8 | -0.5 | -19.0 | 5.3 | 11.8 | 105.7 | 17.3 | | Q2:2021-22 | 184 | 197.9 | 195.7 | 207.4 | 10.8 | 2.1 | 3.9 | 10.2 | 16.9 | 15.1 | #: Growth rates are calculated using three rounds common set of companies, namely, companies responded in the current quarter, one quarter ago and a same quarter a year ago.
**: Not seasonally adjusted. |
| Table 3: Sales and Inventories (Q2:2020-21 to Q2:2021-22) | | Quarter | Number of Companies | 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 | | Q2:2020-21 | 416 | 686.0 | 409.5 | 159.6 | 69.7 | 180.3 | 76.4 | 33.2 | 30.1 | | Q3:2020-21 | 471 | 719.6 | 372.3 | 143.5 | 60.0 | 168.8 | 56.8 | 21.7 | 26.6 | | Q4:2020-21 | 418 | 959.2 | 461.2 | 183.3 | 66.2 | 211.6 | 57.5 | 22.0 | 27.2 | | Q1:2021-22 | 478 | 869.2 | 489.7 | 208.8 | 79.7 | 201.2 | 78.6 | 29.5 | 36.9 | | Q2:2021-22 | 537 | 1012.6 | 494.4 | 200.0 | 78.6 | 215.8 | 60.5 | 20.9 | 29.4 | #: Weighted average of industry level ratios using GVA as weights
RM - Raw Material; WiP - Work in progress; FG - Finished Goods; Inv – Inventory. | Note: The computations of order book growths and inventory to sales ratios are based on methodology given in the OBICUS data release dated October 8, 2021 on RBI website
(link: https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=20650).
1 The survey responses are voluntary. Results of the previous survey round were released on the Bank’s website on October 8, 2021. |