Today, the Reserve Bank released the results of 106th round of its quarterly industrial outlook survey (IOS). The survey1 encapsulates qualitative assessment of the business climate by Indian manufacturing companies for Q1:2024-25 and their expectations for Q2:2024-25 as well as outlook on select parameters for the subsequent two quarters. In all, 1,351 companies responded in this round of the survey, which was conducted during April-June 2024. Highlights: A. Assessment for Q1:2024-25 -
Manufacturers’ assessment of growth in demand conditions moderated from the previous quarter as reflected in their gauge of production, order books, capacity utilisation, employment and overall business situation, but remained positive (Table A). -
Respondents reported some easing in pressures from cost of finance, while pressures on account of input costs and salary outgo were assessed to have gone up during Q1:2024-25. -
Manufacturers assessment of growth in selling prices remained around that assessed in the previous survey; profit margins were reported to deteriorate. -
Overall, business sentiment in the Indian manufacturing sector moderated, as reflected in the business assessment index (BAI)2 moving to 110.8 in Q1:2024-25 from 114.2 in the previous quarter (Chart 1). B. Expectations for Q2:2024-25 -
Manufacturers’ optimism on demand conditions moderated further in Q2:2024-25. -
Input cost pressures are expected to persist, however, pressures from finance cost and wage bill are anticipated to soften. -
Respondents expected moderation in selling prices growth and subdued profit margin vis-à-vis previous quarter. -
The business expectations index (BEI) moderated for the third consecutive quarter to 119.1 from its level of 127.2 in the previous quarter (Chart 1). C. Expectations for Q3 and Q4:2024-25 -
Demand conditions are expected to improve during the second half of the current financial year (Table B). -
Manufacturers expect input cost pressures to persist and anticipate better pricing power in terms of higher growth in selling prices on the back of improved demand conditions in H2:2024-25. | Table A: Summary of Net responses3 on Survey Parameters | | (per cent) | | Parameters | Assessment period | Expectation period | | Q4:2023-24 | Q1:2024:25 | Q1:2024:25 | Q2:2024:25 | | Production | 34.4 | 27.9 | 54.0 | 36.3 | | Order Books | 31.8 | 25.6 | 51.1 | 35.2 | | Pending Orders | 6.2 | 5.9 | 1.8 | 1.8 | | Capacity Utilisation | 24.9 | 18.7 | 43.6 | 29.2 | | Inventory of Raw Materials | -7.3 | -5.9 | -16.3 | -8.3 | | Inventory of Finished Goods | -6.4 | -5.5 | -16.2 | -7.7 | | Exports | 15.7 | 10.9 | 36.1 | 24.8 | | Imports | 13.8 | 13.9 | 31.1 | 22.8 | | Employment | 16.8 | 11.2 | 29.1 | 15.6 | | Financial Situation (Overall) | 34.8 | 28.5 | 54.0 | 42.2 | | Availability of Finance (from internal accruals) | 29.9 | 23.0 | 44.8 | 31.8 | | Availability of Finance (from banks & other sources) | 26.1 | 20.0 | 40.5 | 27.2 | | Availability of Finance (from overseas, if applicable) | 15.9 | 9.8 | 33.2 | 16.9 | | Cost of Raw Material | -43.8 | -49.3 | -52.8 | -51.0 | | Cost of Finance | -24.8 | -16.6 | -36.3 | -19.2 | | Salary/ Other Remuneration | -24.3 | -41.7 | -51.9 | -26.1 | | Selling Price | 8.1 | 8.0 | 24.7 | 17.2 | | Profit Margin | -3.4 | -12.3 | 20.0 | 9.9 | | Overall Business Situation | 35.9 | 29.6 | 56.5 | 45.0 |
| Table B: Business Expectations on Select Parameters for extended period – Net response | | (per cent) | | Parameters | Round 105 | Round 106 | | Q1:2024:25 | Q2:2024:25 | Q3:2024:25 | Q4:2024:25 | | Overall Business Situation | 56.5 | 45.0 | 52.5 | 52.3 | | Production | 54.0 | 36.3 | 50.3 | 50.5 | | Order Books | 51.1 | 35.2 | 49.1 | 48.3 | | Capacity Utilisation | 43.6 | 29.2 | 48.2 | 46.7 | | Employment | 29.1 | 15.6 | 29.6 | 29.2 | | Cost of Raw Materials | -52.8 | -51.0 | -48.2 | -47.5 | | Selling Prices | 24.7 | 17.2 | 28.8 | 29.3 | Note: Please see the excel file for time series data. | Table 1: Assessment and Expectations for Production | | (Percentage responses)@ | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 39.6 | 14.3 | 46.0 | 25.3 | 60.6 | 5.8 | 33.6 | 54.8 | | Q2:2023-24 | 1,223 | 45.2 | 11.2 | 43.6 | 34.0 | 63.0 | 5.0 | 31.9 | 58.0 | | Q3:2023-24 | 1,040 | 41.2 | 12.2 | 46.7 | 29.0 | 70.9 | 5.7 | 23.4 | 65.1 | | Q4:2023-24 | 1,354 | 46.6 | 12.3 | 41.1 | 34.4 | 62.3 | 4.2 | 33.6 | 58.1 | | Q1:2024-25 | 1,351 | 41.4 | 13.6 | 45.0 | 27.9 | 60.0 | 6.0 | 34.0 | 54.0 | | Q2:2024-25 | | | | | | 40.7 | 4.3 | 55.0 | 36.3 | | ‘Increase’ in production is optimistic. | | @: Due to rounding off percentage may not add up to 100. |
| Table 2: Assessment and Expectations for Order Books | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 33.0 | 11.1 | 55.9 | 21.9 | 54.6 | 6.8 | 38.6 | 47.8 | | Q2:2023-24 | 1,223 | 41.1 | 10.4 | 48.5 | 30.7 | 63.0 | 4.8 | 32.2 | 58.1 | | Q3:2023-24 | 1,040 | 38.3 | 12.0 | 49.7 | 26.3 | 68.5 | 6.1 | 25.4 | 62.3 | | Q4:2023-24 | 1,354 | 43.4 | 11.6 | 44.9 | 31.8 | 61.8 | 6.0 | 32.1 | 55.8 | | Q1:2024-25 | 1,351 | 39.9 | 14.3 | 45.9 | 25.6 | 57.1 | 6.0 | 36.9 | 51.1 | | Q2:2024-25 | | | | | | 39.4 | 4.2 | 56.3 | 35.2 | | ‘Increase’ in order books is optimistic. | | @: Due to rounding off percentage may not add up to 100. |
| Table 3: Assessment and Expectations for Pending Orders | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Above Normal | Below Normal | Normal | Net response | Above Normal | Below Normal | Normal | Net response | | Q1:2023-24 | 1,247 | 9.2 | 14.1 | 76.6 | 4.9 | 4.5 | 8.0 | 87.5 | 3.4 | | Q2:2023-24 | 1,223 | 8.6 | 11.6 | 79.8 | 3.1 | 10.9 | 9.2 | 79.9 | -1.7 | | Q3:2023-24 | 1,040 | 8.6 | 11.9 | 79.4 | 3.3 | 9.7 | 8.5 | 81.8 | -1.1 | | Q4:2023-24 | 1,354 | 5.5 | 11.7 | 82.8 | 6.2 | 8.2 | 9.3 | 82.5 | 1.1 | | Q1:2024-25 | 1,351 | 5.7 | 11.6 | 82.7 | 5.9 | 6.4 | 8.1 | 85.5 | 1.8 | | Q2:2024-25 | | | | | | 4.2 | 6.0 | 89.8 | 1.8 | | Pending orders ‘Below Normal’ is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 4: Assessment and Expectations for Capacity Utilisation (Main Product) | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 28.5 | 13.0 | 58.5 | 15.5 | 46.7 | 5.5 | 47.8 | 41.2 | | Q2:2023-24 | 1,223 | 38.2 | 8.7 | 53.0 | 29.5 | 51.8 | 5.2 | 42.9 | 46.6 | | Q3:2023-24 | 1,040 | 30.1 | 10.6 | 59.3 | 19.6 | 62.1 | 4.6 | 33.3 | 57.5 | | Q4:2023-24 | 1,354 | 34.9 | 9.9 | 55.2 | 24.9 | 51.2 | 4.6 | 44.2 | 46.7 | | Q1:2024-25 | 1,351 | 30.1 | 11.4 | 58.6 | 18.7 | 48.4 | 4.8 | 46.8 | 43.6 | | Q2:2024-25 | | | | | | 33.2 | 4.0 | 62.9 | 29.2 | | ‘Increase’ in capacity utilisation is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 5: Level of capacity utilisation (compared to the average in preceding 4 quarters) | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Above Normal | Below Normal | Normal | Net response | Above Normal | Below Normal | Normal | Net response | | Q1:2023-24 | 1,247 | 31.4 | 10.4 | 58.2 | 21.0 | 23.7 | 6.2 | 70.2 | 17.5 | | Q2:2023-24 | 1,223 | 30.5 | 9.0 | 60.6 | 21.5 | 39.0 | 6.0 | 55.1 | 33.0 | | Q3:2023-24 | 1,040 | 26.2 | 9.4 | 64.4 | 16.7 | 36.1 | 6.1 | 57.8 | 30.1 | | Q4:2023-24 | 1,354 | 20.0 | 10.4 | 69.6 | 9.6 | 33.3 | 5.7 | 61.1 | 27.6 | | Q1:2024-25 | 1,351 | 16.2 | 11.7 | 72.1 | 4.6 | 22.5 | 7.1 | 70.4 | 15.4 | | Q2:2024-25 | | | | | | 13.1 | 4.7 | 82.2 | 8.4 | | ‘Above Normal’ in Level of capacity utilisation is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 6: Assessment and Expectations for Assessment of Production Capacity (with regard to expected demand in next 6 months) | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | More than adequate | Less than adequate | Adequate | Net response | More than adequate | Less than adequate | Adequate | Net response | | Q1:2023-24 | 1,247 | 25.8 | 5.7 | 68.4 | 20.1 | 25.3 | 3.8 | 70.9 | 21.5 | | Q2:2023-24 | 1,223 | 23.3 | 4.0 | 72.7 | 19.3 | 43.4 | 3.9 | 52.7 | 39.5 | | Q3:2023-24 | 1,040 | 25.1 | 4.7 | 70.2 | 20.4 | 42.7 | 3.2 | 54.1 | 39.5 | | Q4:2023-24 | 1,354 | 17.7 | 5.6 | 76.7 | 12.1 | 38.5 | 3.6 | 57.9 | 34.9 | | Q1:2024-25 | 1,351 | 9.8 | 3.2 | 87.0 | 6.6 | 27.2 | 4.7 | 68.1 | 22.5 | | Q2:2024-25 | | | | | | 14.7 | 2.5 | 82.8 | 12.3 | | ‘More than adequate’ in Assessment of Production Capacity is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 7: Assessment and Expectations for Exports | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 30.1 | 12.5 | 57.4 | 17.6 | 43.0 | 6.8 | 50.2 | 36.2 | | Q2:2023-24 | 1,223 | 27.7 | 10.0 | 62.3 | 17.7 | 57.9 | 4.4 | 37.7 | 53.5 | | Q3:2023-24 | 1,040 | 25.1 | 13.5 | 61.3 | 11.6 | 58.1 | 5.0 | 36.9 | 53.1 | | Q4:2023-24 | 1,354 | 26.4 | 10.7 | 62.9 | 15.7 | 50.3 | 6.7 | 43.0 | 43.6 | | Q1:2024-25 | 1,351 | 23.7 | 12.8 | 63.4 | 10.9 | 41.6 | 5.5 | 52.9 | 36.1 | | Q2:2024-25 | | | | | | 29.2 | 4.4 | 66.4 | 24.8 | | ‘Increase’ in exports is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 8: Assessment and Expectations for Imports | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 28.9 | 8.6 | 62.5 | 20.4 | 37.4 | 4.2 | 58.4 | 33.2 | | Q2:2023-24 | 1,223 | 25.5 | 8.2 | 66.3 | 17.2 | 55.8 | 3.2 | 41.0 | 52.6 | | Q3:2023-24 | 1,040 | 23.2 | 8.7 | 68.0 | 14.5 | 54.8 | 3.9 | 41.3 | 51.0 | | Q4:2023-24 | 1,354 | 21.6 | 7.8 | 70.6 | 13.8 | 45.2 | 4.2 | 50.6 | 41.0 | | Q1:2024-25 | 1,351 | 21.6 | 7.7 | 70.7 | 13.9 | 35.2 | 4.1 | 60.7 | 31.1 | | Q2:2024-25 | | | | | | 25.7 | 3.0 | 71.3 | 22.8 | | ‘Increase’ in imports is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 9: Assessment and Expectations for level of Raw Materials Inventory | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Above average | Below average | Average | Net response | Above average | Below average | Average | Net response | | Q1:2023-24 | 1,247 | 13.4 | 7.1 | 79.5 | -6.3 | 20.5 | 2.5 | 76.9 | -18.0 | | Q2:2023-24 | 1,223 | 11.5 | 5.3 | 83.2 | -6.1 | 33.0 | 4.0 | 63.1 | -29.0 | | Q3:2023-24 | 1,040 | 12.9 | 4.1 | 83.0 | -8.9 | 30.9 | 3.6 | 65.6 | -27.3 | | Q4:2023-24 | 1,354 | 13.3 | 6.0 | 80.7 | -7.3 | 27.4 | 1.7 | 70.9 | -25.7 | | Q1:2024-25 | 1,351 | 11.9 | 6.0 | 82.1 | -5.9 | 20.2 | 3.9 | 75.9 | -16.3 | | Q2:2024-25 | | | | | | 10.7 | 2.3 | 87.0 | -8.3 | | ‘Below average’ Inventory of raw materials is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 10: Assessment and Expectations for level of Finished Goods Inventory | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Above average | Below average | Average | Net response | Above average | Below average | Average | Net response | | Q1:2023-24 | 1,247 | 14.0 | 6.8 | 79.2 | -7.2 | 19.9 | 2.8 | 77.3 | -17.2 | | Q2:2023-24 | 1,223 | 11.7 | 4.5 | 83.7 | -7.2 | 33.2 | 4.4 | 62.4 | -28.8 | | Q3:2023-24 | 1,040 | 14.0 | 4.5 | 81.5 | -9.5 | 31.4 | 3.3 | 65.3 | -28.2 | | Q4:2023-24 | 1,354 | 12.4 | 6.0 | 81.7 | -6.4 | 27.3 | 2.0 | 70.7 | -25.3 | | Q1:2024-25 | 1,351 | 11.9 | 6.4 | 81.7 | -5.5 | 20.1 | 3.9 | 75.9 | -16.2 | | Q2:2024-25 | | | | | | 10.3 | 2.6 | 87.1 | -7.7 | | ‘Below average’ Inventory of finished goods is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 11: Assessment and Expectations for Employment Outlook | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 25.9 | 9.9 | 64.2 | 16.1 | 29.8 | 3.1 | 67.1 | 26.7 | | Q2:2023-24 | 1,223 | 25.1 | 7.1 | 67.7 | 18.0 | 43.5 | 3.0 | 53.5 | 40.5 | | Q3:2023-24 | 1,040 | 25.1 | 6.9 | 67.9 | 18.2 | 42.5 | 3.7 | 53.8 | 38.8 | | Q4:2023-24 | 1,354 | 21.7 | 4.9 | 73.4 | 16.8 | 41.7 | 2.2 | 56.1 | 39.5 | | Q1:2024-25 | 1,351 | 18.5 | 7.3 | 74.1 | 11.2 | 31.3 | 2.2 | 66.5 | 29.1 | | Q2:2024-25 | | | | | | 17.7 | 2.1 | 80.2 | 15.6 | | ‘Increase’ in employment is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 12: Assessment and Expectations for Overall Financial Situation | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Better | Worsen | No change | Net response | Better | Worsen | No change | Net response | | Q1:2023-24 | 1,247 | 36.6 | 12.6 | 50.7 | 24.0 | 56.3 | 3.4 | 40.3 | 52.9 | | Q2:2023-24 | 1,223 | 41.6 | 10.7 | 47.7 | 30.9 | 60.2 | 3.9 | 35.9 | 56.3 | | Q3:2023-24 | 1,040 | 36.8 | 11.2 | 52.0 | 25.6 | 68.7 | 5.1 | 26.2 | 63.5 | | Q4:2023-24 | 1,354 | 45.0 | 10.1 | 44.9 | 34.8 | 58.2 | 4.0 | 37.8 | 54.2 | | Q1:2024-25 | 1,351 | 40.9 | 12.4 | 46.7 | 28.5 | 59.2 | 5.2 | 35.6 | 54.0 | | Q2:2024-25 | | | | | | 44.7 | 2.5 | 52.8 | 42.2 | | ‘Better’ overall financial situation is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 13: Assessment and Expectations for Working Capital Finance Requirement | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 34.8 | 5.8 | 59.4 | 29.1 | 48.0 | 1.9 | 50.0 | 46.1 | | Q2:2023-24 | 1,223 | 38.4 | 5.1 | 56.6 | 33.3 | 53.3 | 2.2 | 44.4 | 51.1 | | Q3:2023-24 | 1,040 | 32.8 | 6.9 | 60.3 | 26.0 | 60.2 | 2.6 | 37.3 | 57.6 | | Q4:2023-24 | 1,354 | 37.5 | 4.7 | 57.8 | 32.8 | 49.6 | 2.9 | 47.6 | 46.7 | | Q1:2024-25 | 1,351 | 31.6 | 6.5 | 61.9 | 25.1 | 46.6 | 3.0 | 50.4 | 43.6 | | Q2:2024-25 | | | | | | 32.0 | 2.1 | 66.0 | 29.9 | | ‘Increase’ in working capital finance is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 14: Assessment and Expectations for Availability of Finance (from Internal Accruals) | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Improve | Worsen | No change | Net response | Improve | Worsen | No change | Net response | | Q1:2023-24 | 1,247 | 33.2 | 7.4 | 59.4 | 25.8 | 48.7 | 2.0 | 49.3 | 46.6 | | Q2:2023-24 | 1,223 | 37.1 | 6.3 | 56.6 | 30.8 | 54.4 | 2.1 | 43.5 | 52.3 | | Q3:2023-24 | 1,040 | 30.6 | 6.9 | 62.5 | 23.7 | 61.6 | 2.5 | 35.9 | 59.1 | | Q4:2023-24 | 1,354 | 35.9 | 6.0 | 58.0 | 29.9 | 49.3 | 2.0 | 48.7 | 47.4 | | Q1:2024-25 | 1,351 | 29.5 | 6.5 | 64.0 | 23.0 | 47.7 | 2.9 | 49.4 | 44.8 | | Q2:2024-25 | | | | | | 33.0 | 1.2 | 65.9 | 31.8 | | ‘Improvement’ in availability of finance is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 15: Assessment and Expectations for Availability of Finance (from banks and other sources) | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Improve | Worsen | No change | Net response | Improve | Worsen | No change | Net response | | Q1:2023-24 | 1,247 | 26.5 | 6.1 | 67.4 | 20.4 | 42.2 | 2.1 | 55.7 | 40.1 | | Q2:2023-24 | 1,223 | 34.9 | 5.7 | 59.4 | 29.1 | 50.5 | 1.5 | 47.9 | 49.0 | | Q3:2023-24 | 1,040 | 28.8 | 5.6 | 65.5 | 23.2 | 58.2 | 2.5 | 39.3 | 55.8 | | Q4:2023-24 | 1,354 | 31.2 | 5.1 | 63.6 | 26.1 | 46.5 | 2.1 | 51.4 | 44.5 | | Q1:2024-25 | 1,351 | 25.9 | 5.9 | 68.3 | 20.0 | 43.2 | 2.8 | 54.0 | 40.5 | | Q2:2024-25 | | | | | | 28.7 | 1.4 | 69.9 | 27.2 | | ‘Improvement’ in availability of finance is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 16: Assessment and Expectations for Availability of Finance (from overseas, if applicable) | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Improve | Worsen | No change | Net response | Improve | Worsen | No change | Net response | | Q1:2023-24 | 1,247 | 23.8 | 5.8 | 70.4 | 18.0 | 34.3 | 1.8 | 64.0 | 32.5 | | Q2:2023-24 | 1,223 | 24.3 | 5.7 | 69.9 | 18.6 | 52.4 | 2.0 | 45.7 | 50.4 | | Q3:2023-24 | 1,040 | 20.2 | 6.0 | 73.9 | 14.2 | 56.4 | 2.9 | 40.7 | 53.5 | | Q4:2023-24 | 1,354 | 21.2 | 5.2 | 73.6 | 15.9 | 45.3 | 1.4 | 53.4 | 43.9 | | Q1:2024-25 | 1,351 | 16.2 | 6.5 | 77.3 | 9.8 | 35.9 | 2.7 | 61.5 | 33.2 | | Q2:2024-25 | | | | | | 18.1 | 1.2 | 80.7 | 16.9 | | ‘Improvement’ in availability of finance is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 17: Assessment and Expectations for Cost of Finance | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 36.9 | 4.5 | 58.6 | -32.4 | 47.5 | 1.7 | 50.8 | -45.8 | | Q2:2023-24 | 1,223 | 33.0 | 6.6 | 60.4 | -26.4 | 56.4 | 2.2 | 41.5 | -54.2 | | Q3:2023-24 | 1,040 | 29.2 | 6.8 | 64.0 | -22.5 | 58.5 | 3.6 | 37.9 | -54.9 | | Q4:2023-24 | 1,354 | 31.3 | 6.5 | 62.3 | -24.8 | 48.8 | 2.9 | 48.3 | -45.9 | | Q1:2024-25 | 1,351 | 23.3 | 6.7 | 70.0 | -16.6 | 40.3 | 4.1 | 55.6 | -36.3 | | Q2:2024-25 | | | | | | 22.1 | 2.9 | 75.0 | -19.2 | | ‘Decrease’ in cost of finance is optimistic. Footnote ‘@’ given in Table 1 is applicable here. The column heads, namely ‘Increase’ and ‘Decrease’ in data releases for rounds 82-87 were interchanged and should be read as above. |
| Table 18: Assessment and Expectations for Cost of Raw Materials | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 49.1 | 8.0 | 42.8 | -41.1 | 62.6 | 1.7 | 35.8 | -60.9 | | Q2:2023-24 | 1,223 | 49.3 | 5.5 | 45.3 | -43.8 | 60.6 | 2.4 | 37.0 | -58.3 | | Q3:2023-24 | 1,040 | 41.8 | 8.4 | 49.7 | -33.4 | 67.8 | 2.8 | 29.3 | -65.0 | | Q4:2023-24 | 1,354 | 50.2 | 6.3 | 43.5 | -43.8 | 57.0 | 2.9 | 40.1 | -54.2 | | Q1:2024-25 | 1,351 | 53.9 | 4.6 | 41.5 | -49.3 | 55.9 | 3.1 | 40.9 | -52.8 | | Q2:2024-25 | | | | | | 52.1 | 1.1 | 46.9 | -51.0 | | ‘Decrease’ in cost of raw materials is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 19: Assessment and Expectations for Salary/Other Remuneration | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 41.1 | 3.0 | 56.0 | -38.1 | 45.2 | 0.9 | 53.9 | -44.3 | | Q2:2023-24 | 1,223 | 32.3 | 3.5 | 64.2 | -28.8 | 49.8 | 0.5 | 49.7 | -49.3 | | Q3:2023-24 | 1,040 | 30.3 | 4.1 | 65.7 | -26.2 | 47.3 | 1.7 | 51.0 | -45.6 | | Q4:2023-24 | 1,354 | 26.1 | 1.8 | 72.1 | -24.3 | 42.9 | 0.9 | 56.2 | -42.0 | | Q1:2024-25 | 1,351 | 42.9 | 1.2 | 55.9 | -41.7 | 52.9 | 0.9 | 46.2 | -51.9 | | Q2:2024-25 | | | | | | 26.7 | 0.6 | 72.7 | -26.1 | | ‘Decrease’ in Salary / other remuneration is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 20: Assessment and Expectations for Selling Price | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 26.1 | 13.3 | 60.6 | 12.8 | 34.0 | 5.6 | 60.4 | 28.4 | | Q2:2023-24 | 1,223 | 22.3 | 10.6 | 67.1 | 11.7 | 46.9 | 5.4 | 47.7 | 41.4 | | Q3:2023-24 | 1,040 | 22.0 | 11.9 | 66.1 | 10.2 | 45.2 | 5.2 | 49.6 | 40.1 | | Q4:2023-24 | 1,354 | 18.9 | 10.8 | 70.3 | 8.1 | 40.4 | 5.6 | 54.0 | 34.8 | | Q1:2024-25 | 1,351 | 18.5 | 10.5 | 71.0 | 8.0 | 30.5 | 5.7 | 63.8 | 24.7 | | Q2:2024-25 | | | | | | 20.3 | 3.1 | 76.5 | 17.2 | | ‘Increase’ in selling price is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 21: Assessment and Expectations for Profit Margin | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Increase | Decrease | No change | Net response | Increase | Decrease | No change | Net response | | Q1:2023-24 | 1,247 | 20.6 | 21.8 | 57.5 | -1.2 | 30.5 | 11.4 | 58.1 | 19.1 | | Q2:2023-24 | 1,223 | 21.9 | 17.4 | 60.7 | 4.5 | 43.8 | 8.1 | 48.1 | 35.7 | | Q3:2023-24 | 1,040 | 20.5 | 19.1 | 60.4 | 1.4 | 45.5 | 9.7 | 44.8 | 35.8 | | Q4:2023-24 | 1,354 | 17.2 | 20.6 | 62.1 | -3.4 | 40.3 | 9.5 | 50.2 | 30.8 | | Q1:2024-25 | 1,351 | 13.0 | 25.3 | 61.7 | -12.3 | 30.4 | 10.4 | 59.2 | 20.0 | | Q2:2024-25 | | | | | | 16.7 | 6.8 | 76.4 | 9.9 | | ‘Increase’ in profit margin is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 22: Assessment and Expectations for Overall Business Situation | | (Percentage responses) | | Quarter | Total response | Assessment | Expectations | | Better | Worsen | No change | Net response | Better | Worsen | No change | Net response | | Q1:2023-24 | 1,247 | 39.9 | 15.0 | 45.1 | 24.9 | 62.4 | 4.0 | 33.6 | 58.3 | | Q2:2023-24 | 1,223 | 46.0 | 11.8 | 42.2 | 34.3 | 65.0 | 4.3 | 30.7 | 60.7 | | Q3:2023-24 | 1,040 | 40.6 | 12.0 | 47.4 | 28.6 | 73.1 | 5.2 | 21.7 | 67.9 | | Q4:2023-24 | 1,354 | 47.2 | 11.3 | 41.4 | 35.9 | 62.5 | 4.2 | 33.3 | 58.3 | | Q1:2024-25 | 1,351 | 42.7 | 13.1 | 44.2 | 29.6 | 62.0 | 5.5 | 32.5 | 56.5 | | Q2:2024-25 | | | | | | 47.4 | 2.5 | 50.1 | 45.0 | | ‘Better’ Overall Business Situation is optimistic. Footnote ‘@’ given in Table 1 is applicable here. |
| Table 23: Business Sentiments | | Quarter | Business Assessment Index (BAI) | Business Expectations Index (BEI) | | Q1:2023-24 | 112.2 | 126.4 | | Q2:2023-24 | 115.0 | 132.5 | | Q3:2023-24 | 113.9 | 135.4 | | Q4:2023-24 | 114.2 | 130.3 | | Q1:2024-25 | 110.8 | 127.2 | | Q2:2024-25 | | 119.1 |
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