Today, the Reserve Bank released the results of the 51th round of the Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the quarter July-September 2020 covering 602 manufacturing companies. The survey provides a snapshot of demand conditions in India’s manufacturing sector1. Highlights: - After recording the historical low of 47.3 per cent in Q1:2020-21, which witnessed COVID-19 pandemic related restrictions and lockdown, aggregate level capacity utilisation (CU) recovered to 63.3 per cent in Q2:2020-21. Seasonally adjusted CU also increased to 64.1 per cent in Q2:2020-21 from 47.9 per cent in the previous quarter (Chart 1).
- With gradual relaxation in COVID related restrictions, manufacturing companies received substantially higher new orders during Q2:2020-21 as compared to that in the previous quarter as well as a year ago (Chart 2).
- During Q2:2020-21, finished goods inventory (FGI) and raw material inventory (RMI) were close to their level in the previous quarter, whereas sales improved considerably with the revival of economic activity. This resulted in fall in ratios of FGI and RMI to sales (Chart 3).
Note- Please see the excel file for time series data.
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 | | Q2:2019-20 | 819 | 69.1 | 129.4 | 5.2 | | Q3:2019-20 | 700 | 68.6 | 130.8 | 7.0 | | Q4:2019-20 | 349 | 69.9 | 127.9 | 4.6 | | Q1:2020-21 | 406 | 47.3 | 77.9 | -44.9 | | Q2:2020-21 | 563 | 63.3 | 121.0 | -1.3 | | *: Index of Industrial Production (Base: 2011-12) |
Table 1.2: Order Books (Q2:2019-20 to Q2:2020-21)
(Based on common set of 56 companies in 9 quarters)** | | Quarter | Amount (₹ Crores) | 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 | | Q2:2019-20 | 119.7 | 151.6 | 116.6 | 7.8 | -15.1 | -2.3 | 11.9 | -14.7 | 3.6 | | Q3:2019-20 | 116.6 | 161.4 | 114.0 | -2.6 | 6.5 | -2.3 | 3.5 | -4.7 | 3.4 | | Q4:2019-20 | 114.3 | 152.0 | 107.0 | -2.0 | -5.9 | -6.1 | 3.7 | -16.8 | -3.9 | | Q1:2020-21 | 106.9 | 101.7 | 111.6 | -6.5 | -33.1 | 4.3 | -3.7 | -43.1 | -6.5 | | Q2:2020-21 | 111.8 | 175.0 | 103.5 | 4.6 | 72.1 | -7.3 | -6.6 | 15.4 | -11.2 | **: As required for calculating growth rates in recent 5 quarters.
***: Not seasonally adjusted |
Table 1.3: Average Sales and Inventories (Q2:2019-20 to Q2:2020-21)
(Based on common set of 174 companies in 5 quarters) | | Quarter | Amount (₹ Crores) | Ratio (per cent) | | Average Sales | Average Total Inv | Average FG Inv | Average WiPInv | Average RM Inv | Total Inv/Sales | FG Inv/Sales | RMInv/Sales | | Q2:2019-20 | 935.9 | 483.1 | 144.7 | 71.3 | 267.1 | 51.6 | 15.5 | 28.5 | | Q3:2019-20 | 960.0 | 514.5 | 156.0 | 71.2 | 287.2 | 53.6 | 16.3 | 29.9 | | Q4:2019-20 | 902.0 | 503.5 | 140.0 | 48.7 | 315.1 | 55.8 | 15.5 | 34.9 | | Q1:2020-21 | 509.4 | 464.4 | 125.4 | 77.7 | 261.3 | 91.2 | 24.6 | 51.3 | | Q2:2020-21 | 708.6 | 463.5 | 122.6 | 84.1 | 256.8 | 65.4 | 17.3 | 36.2 | | RM - Raw Material; WiP - Work in progress; FG - Finished Goods; Inv – Inventory. |
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