Today, the Reserve Bank released the results of the 44th round of the Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the quarter October-December 2018 covering 909 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 75.9 per cent in Q3:2018-19, co-moving with the de-trended index of industrial production2 (IIP) (Chart 1). Seasonally adjusted CU also increased by 0.7 percentage points to 76.1 per cent in Q3:2018-19. 2) Order Books: New orders received in Q3:2018-19 were lower - year-on-year (Y-o-Y) and quarter-on-quarter (Q-o-Q) (Chart 2), with growth moderating for the second successive quarter. 3) Inventories to Sales Ratio: With some moderation in sales growth in Q3:2018-19 and with less orders received, the manufacturing sector scaled down inventories of finished goods and raw materials. As a result, the finished goods inventory to sales ratio (FG INV/S) and the raw materials inventory to sales ratio (RM INV/S) declined in Q3:2018-19 from the previous quarter (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 | | Q3:2017-18 | 940 | 74.1 | 127.8 | 1.1 | | Q4:2017-18 | 921 | 75.2 | 134.6 | 6.7 | | Q1:2018-19 | 850 | 73.8 | 127.3 | -1.8 | | Q2:2018-19 | 818 | 74.8 | 129.9 | -0.3 | | Q3: 2018-19 | 860 | 75.9 | 132.1 | 0.7 | | *: Index of Industrial Production (Base: 2011-12) |
Table 1.2: Order Books (Q3:2017-18 to Q3:2018-19)
(Based on common set of 103 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 | | Q3:2017-18 | 0.941 | 1.650 | 1.346 | 32.5 | 18.9 | 43.9 | 18.5 | 76.5 | 73.3 | | Q4:2017-18 | 1.349 | 1.206 | 1.197 | 43.4 | -26.9 | -11.1 | 74.7 | 13.2 | 87.9 | | Q1:2018-19 | 1.201 | 1.707 | 1.614 | -10.9 | 41.6 | 34.8 | 88.2 | 48.8 | 127.9 | | Q2:2018-19 | 1.614 | 1.783 | 1.982 | 34.4 | 4.4 | 22.8 | 127.4 | 28.5 | 111.9 | | Q3: 2018-19 | 1.987 | 1.465 | 1.968 | 23.1 | -17.8 | -0.7 | 111.2 | -11.2 | 46.2 | **: 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 347 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 | | Q3:2017-18 | 7.333 | 3.260 | 1.043 | 0.341 | 1.876 | 44.5 | 14.2 | 25.6 | | Q4:2017-18 | 8.079 | 3.403 | 1.050 | 0.363 | 1.989 | 42.1 | 13.0 | 24.6 | | Q1:2018-19 | 8.158 | 3.770 | 1.150 | 0.393 | 2.227 | 46.2 | 14.1 | 27.3 | | Q2:2018-19 | 8.729 | 3.994 | 1.310 | 0.446 | 2.237 | 45.8 | 15.0 | 25.6 | | Q3: 2018-19 | 8.751 | 3.792 | 1.249 | 0.377 | 2.166 | 43.3 | 14.3 | 24.8 | | RM - Raw Material; WiP - Work in progress; FG - Finished Goods; Inv – Inventory. |
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