Today, the Reserve Bank released the results of the 52nd round of the Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the October-December 2020 quarter covering 644 manufacturing companies. The survey provides a snapshot of demand conditions in India’s manufacturing sector1. Highlights: - The aggregate level capacity utilisation (CU) improved further to 66.6 per cent in Q3:2020-21 from the level of 63.3 per cent recorded in Q2:2020-21, on the back of strengthening of production activities and easing of the restrictions related to the COVID-19 pandemic (Chart 1).
- Manufacturing companies received more new orders during Q3:2020-21 as compared to that in the previous quarter as well as a year ago. Sequential growth (q-on-q) in new orders, however, moderated in Q3:2020-21 as it was on top of a period characterised by surge in orders due to easing of lockdown related restrictions (Chart 2).
- The ratio of raw material inventory (RMI) to sales increased marginally during the quarter, while finished goods inventory (FGI) to sales ratio remained stable (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 | | Q3:2019-20 | 700 | 68.6 | 130.8 | 5.7 | | Q4:2019-20 | 349 | 69.9 | 127.9 | 3.1 | | Q1:2020-21 | 406 | 47.3 | 77.9 | -46.7 | | Q2:2020-21 | 563 | 63.3 | 121.2 | -3.1 | | Q3:2020-21 | 610 | 66.6 | 132.8 | 8.7 | | *: Index of Industrial Production (Base: 2011-12) |
Table 1.2: Order Books (Q3:2019-20 to Q3:2020-21)
(Based on common set of 51 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 | | Q3:2019-20 | 217.0 | 141.1 | 225.3 | 4.4 | 6.0 | 3.8 | 8.0 | -30.0 | 11.8 | | Q4:2019-20 | 225.6 | 139.2 | 232.5 | 4.0 | -1.3 | 3.2 | 12.2 | -9.1 | 15.3 | | Q1:2020-21 | 232.4 | 78.5 | 235.2 | 3.0 | -43.6 | 1.2 | 15.5 | -45.4 | 13.3 | | Q2:2020-21 | 235.4 | 133.1 | 219.5 | 1.3 | 69.6 | -6.7 | 13.2 | 0.0 | 1.1 | | Q3:2020-21 | 218.9 | 172.2 | 237.6 | -7.0 | 29.4 | 8.3 | 0.9 | 22.0 | 5.5 | **: As required for calculating growth rates in recent 5 quarters.
***: Not seasonally adjusted |
Table 1.3: Average Sales and Inventories (Q3:2019-20 to Q3:2020-21)
(Based on common set of 156 companies in 5 quarters) | | Quarter | Amount (₹ Crores) | 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 | | Q3:2019-20 | 1037.8 | 536.5 | 158.3 | 72.9 | 305.3 | 51.7 | 15.3 | 29.4 | | Q4:2019-20 | 972.4 | 521.3 | 138.5 | 46.9 | 336.2 | 53.6 | 14.2 | 34.6 | | Q1:2020-21 | 548.3 | 485.7 | 125.5 | 79.6 | 280.6 | 88.6 | 22.9 | 51.2 | | Q2:2020-21 | 756.5 | 479.6 | 122.4 | 85.7 | 271.4 | 63.4 | 16.2 | 35.9 | | Q3:2020-21 | 830.8 | 532.5 | 131.4 | 77.5 | 323.6 | 64.1 | 15.8 | 38.9 | | RM - Raw Material; WiP - Work in progress; FG - Finished Goods; Inv – Inventory. |
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