Today, the Reserve Bank released the results of the 45th round of the Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the quarter January-March 2019 covering 843 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 by 0.2 percentage points to 76.1 per cent in Q4:2018-19, co-moving with de-trended manufacturing output in the index of industrial production (IIP) (Chart 1). Seasonally adjusted CU, however, declined by 1.1 percentage points to 74.5 per cent in Q4:2018-19. 2) Order Books: Although fewer new orders were received in Q4:2018-19 relative to the preceding quarter, order books increased on a year on year basis and moved into expansion zone on the back of favourable base effects (Chart 2). 3) Finished Goods Inventory (FGI) to Sales Ratio: A rise in the ratio of FGI to sales essentially reflected a decline in sales (Chart 3). 4) Raw Material Inventory (RMI) to Sales Ratio: The rise in the ratio of RMI to sales was entirely due to contraction in sales (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 | | Q4:2017-18 | 921 | 75.2 | 134.6 | 6.4 | | Q1:2018-19 | 850 | 73.8 | 127.3 | -2.1 | | Q2:2018-19 | 818 | 74.8 | 129.9 | -0.7 | | Q3: 2018-19 | 860 | 75.9 | 132.2 | 0.3 | | Q4: 2018-19 | 802 | 76.1 | 135.0 | 1.9 | | *: Index of Industrial Production (Base: 2011-12) |
Table 1.2: Order Books (Q4:2017-18 to Q4:2018-19)
(Based on common set of 91 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 | | Q4:2017-18 | 1.570 | 1.245 | 1.385 | 42.7 | -29.8 | -11.8 | 62.6 | 12.7 | 74.7 | | Q1:2018-19 | 1.386 | 1.836 | 1.875 | -11.7 | 47.5 | 35.3 | 74.6 | 53.6 | 118.3 | | Q2:2018-19 | 1.874 | 1.926 | 2.318 | 35.2 | 4.9 | 23.6 | 118.4 | 32.8 | 110.9 | | Q3: 2018-19 | 2.318 | 1.579 | 2.337 | 23.7 | -18.0 | 0.8 | 110.8 | -10.9 | 48.9 | | Q4: 2018-19 | 2.337 | 1.372 | 2.012 | 0.8 | -13.1 | -13.9 | 48.9 | 10.2 | 45.3 | **: As required for calculating growth rates in recent 5 quarters.
***: Not seasonally adjusted |
Table 1.3: Average Sales and Inventories (Q4:2017-18 to Q4:2018-19)
(Based on common set of 360 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 | | Q4:2017-18 | 9.557 | 3.918 | 1.441 | 0.417 | 2.061 | 41.0 | 15.1 | 21.6 | | Q1:2018-19 | 9.614 | 4.113 | 1.354 | 0.438 | 2.320 | 42.8 | 14.1 | 24.1 | | Q2:2018-19 | 10.170 | 4.295 | 1.516 | 0.476 | 2.303 | 42.2 | 14.9 | 22.6 | | Q3: 2018-19 | 10.364 | 4.045 | 1.327 | 0.450 | 2.269 | 39.0 | 12.8 | 21.9 | | Q4: 2018-19 | 10.200 | 4.107 | 1.364 | 0.473 | 2.269 | 40.3 | 13.4 | 22.3 | | RM - Raw Material; WiP - Work in progress; FG - Finished Goods; Inv – Inventory. |
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