Today, the Reserve Bank released the results of its 59th round of the quarterly Order Books, Inventories and Capacity Utilisation Survey (OBICUS) conducted during Q3:2022-23 covering 800 manufacturing companies. The survey1 provides a snapshot of demand conditions in India’s manufacturing sector during July-September 2022. Highlights: - The aggregate level capacity utilisation (CU) for the manufacturing sector improved to 74.0 per cent in Q2:2022-23 from 72.4 per cent in the previous quarter. The seasonally adjusted CU for Q2:2022-23 also increased by 20 basis points (bps) to 74.5 per cent from its level in the previous quarter (Chart 1 and Table 1).
- New orders received by manufacturing companies during Q2:2022-23 were close to their level in the previous quarters but they were substantially higher than that in the corresponding quarter a year ago. (Chart 2 and Table 2A).
- Both raw material inventory (RMI) to sales and finished goods inventory (FGI) to sales ratios declined in Q2:2022-23 as compared to the previous quarter, which was commensurate with higher sales growth and similar level of new orders on sequential basis (Chart 3 and Table 3A).
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 | Q2:2021-22 | 728 | 68.3 | 131.6 | 1.6 | Q3:2021-22 | 757 | 72.4 | 135.0 | 4.5 | Q4:2021-22 | 727 | 75.3 | 138.1 | 7.0 | Q1:2022-23 | 692 | 72.4 | 134.3 | 2.6 | Q2:2022-23 | 745 | 74.0 | 133.7 | 1.4 | *: Index of Industrial Production (Base: 2011-12) | Table 2A: Order Books Growth (Q2:2021-22 to Q2:2022-23) | Quarter | Number of companies | Q-o-Q Growth # (per cent) ** | Y-o-Y Growth # (per cent) | Backlog Orders | New Order Book | Pending Orders | Backlog Orders | New Order Book | Pending Orders | Q2:2021-22 | 184 | 10.8 | 2.1 | 3.9 | 10.2 | 16.9 | 15.1 | Q3:2021-22 | 205 | 3.5 | 10.5 | 7.8 | 19.5 | 20.9 | 20.5 | Q4:2021-22 | 207 | 4.7 | 5.6 | 4.6 | 14.2 | 28.4 | 25.1 | Q1:2022-23 | 233 | 0.3 | 3.4 | 4.2 | 15.2 | 38.7 | 10.3 | Q2:2022-23 | 265 | 4.6 | -0.1 | 10.8 | 11.4 | 25.9 | 20.1 | #: Growth rates are calculated using three rounds common set of companies, namely, companies responded in the current quarter, one quarter ago and the same quarter a year ago. **: Not seasonally adjusted. | Table 2B: Average Size of Order Books (Q2:2021-22 to Q2:2022-23) | Quarter | Number of companies | Average Amount (₹ Crores) | Backlog Orders | New Order Book | Pending Orders | Q2:2021-22 | 184 | 197.9 | 195.7 | 207.4 | Q3:2021-22 | 205 | 182.3 | 224.4 | 196.6 | Q4:2021-22 | 207 | 176.3 | 222.4 | 184.2 | Q1:2022-23 | 233 | 221.7 | 244.8 | 231.5 | Q2:2022-23 | 265 | 208.8 | 307.9 | 232.4 | Table 3A: Inventory to Sales Ratios (Q2:2021-22 to Q2:2022-23) | Quarter | Number of Companies | Ratio (per cent) # | Total Inventory / Sales | Finished Goods Inventory / Sales | Raw Material Inventory / Sales | Q2:2021-22 | 537 | 60.5 | 20.9 | 29.4 | Q3:2021-22 | 681 | 58.1 | 22.4 | 28.0 | Q4:2021-22 | 651 | 65.2 | 24.7 | 30.5 | Q1:2022-23 | 630 | 69.6 | 24.6 | 33.5 | Q2:2022-23 | 721 | 61.8 | 22.6 | 29.6 | #: Weighted average of industry level ratios using GVA as weights | Table 3B: Average Sales and Inventories (Q2:2021-22 to Q2:2022-23) | Quarter | Number of Companies | Average Amount (₹ Crores) | Sales | Total Inventory | Finished Goods Inventory | Work in progress Inventory | Raw Material Inventory | Q2:2021-22 | 537 | 1012.6 | 494.4 | 200.0 | 78.6 | 215.8 | Q3:2021-22 | 681 | 1027.9 | 465.0 | 193.5 | 62.0 | 209.5 | Q4:2021-22 | 651 | 1123.2 | 530.2 | 219.2 | 79.8 | 231.2 | Q1:2022-23 | 630 | 1238.3 | 591.8 | 238.3 | 87.3 | 266.2 | Q2:2022-23 | 721 | 1285.8 | 508.2 | 217.6 | 73.2 | 217.4 | Note: The computations of order book growths and inventory to sales ratios are based on methodology given in the RBI press release dated October 8, 2021 (link: https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=20650) and not on the basis of averages given in the above tables.
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