Today, the Reserve Bank released the results of the 43rd round of the Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the quarter July-September 2018 covering 945 manufacturing companies. The survey provides a snapshot of demand conditions in India’s manufacturing sector1. Highlights: 1) Capacity Utilisation (CU): At the aggregate level, CU rose to 74.8 per cent in Q2:2018-19, co-moving with the de-trended index of industrial production2 (IIP) (Chart 1). Seasonally adjusted CU also increased by 0.4 percentage point to 75.3 per cent in Q2:2018-19. 2) Order Books: New orders growth moderated in Q2:2018-19 (Chart 2). 3) Finished Goods Inventory (FGI) to Sales Ratio: In anticipation of higher demand in the festival season, producers might have stocked up on finished goods leading to increase in the level of FGI to sales ratio from the previous quarter, (Chart 3). 4) Raw Material Inventory (RMI) to Sales Ratio: The rise in sales during Q2:2018-19 brought the RMI to Sales ratio closer to trend level (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 | | Q2:2017-18 | 756 | 71.8 | 123.0 | -2.4 | | Q3:2017-18 | 940 | 74.1 | 127.8 | 1.2 | | Q4:2017-18 | 921 | 75.2 | 134.6 | 6.8 | | Q1:2018-19 | 850 | 73.8 | 127.3 | -1.6 | | Q2:2018-19 | 818 | 74.8 | 129.8 | -0.3 | | *: Index of Industrial Production (Base: 2011-12) |
Table 1.2: Order Books (Q2:2017-18 to Q2:2018-19)
(Based on common set of 106 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 | | Q2:2017-18 | 0.796 | 1.419 | 1.023 | 12.5 | 20.1 | 28.9 | -10.6 | 45.8 | 18.8 | | Q3:2017-18 | 1.028 | 1.663 | 1.437 | 29.2 | 17.2 | 40.4 | 19.1 | 73.4 | 70.0 | | Q4:2017-18 | 1.440 | 1.228 | 1.285 | 40.0 | -26.1 | -10.6 | 71.3 | 11.9 | 83.0 | | Q1:2018-19 | 1.281 | 1.699 | 1.679 | -11.0 | 38.3 | 30.7 | 81.1 | 43.8 | 111.4 | | Q2:2018-19 | 1.682 | 1.789 | 2.036 | 31.3 | 5.3 | 21.3 | 111.4 | 26.1 | 98.9 | **: As required for calculating growth rates in recent 5 quarters.
***: Not seasonally adjusted |
Table 1.3: Average Sales and Inventories (Q2:2017-18 to Q2:2018-19)
(Based on common set of 299 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 | | Q2:2017-18 | 10.487 | 3.926 | 1.423 | 0.381 | 2.122 | 37.4 | 13.6 | 20.2 | | Q3:2017-18 | 10.443 | 4.145 | 1.442 | 0.410 | 2.293 | 39.7 | 13.8 | 22.0 | | Q4:2017-18 | 11.076 | 4.407 | 1.487 | 0.411 | 2.510 | 39.8 | 13.4 | 22.7 | | Q1:2018-19 | 11.399 | 4.928 | 1.641 | 0.472 | 2.814 | 43.2 | 14.4 | 24.7 | | Q2:2018-19 | 12.462 | 5.323 | 1.897 | 0.569 | 2.857 | 42.7 | 15.2 | 22.9 | | RM - Raw Material; WiP - Work in progress; FG - Finished Goods; Inv – Inventory. |
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