Today, the Reserve Bank released the results of the 57th round of the quarterly Order Books, Inventories and Capacity Utilisation Survey (OBICUS), which provides a snapshot of demand conditions in India’s manufacturing sector1 during January-March 2022. The survey covered 765 manufacturing companies. Highlights: - At the aggregate level, the capacity utilisation (CU) in the manufacturing sector rose to 75.3 per cent in Q4:2021-22 from 72.4 per cent recorded in the previous quarter, showing improvement for the third successive quarter. (Chart 1 and Table 1).
- Manufacturing companies received more new orders during Q4:2021-22 as compared with the level in the previous quarter as well as in the corresponding quarter a year ago (Chart 2 and Table 2A).
- With significant improvement in demand condition, companies augmented their inventories to meet new orders: as a ratio to sales, the finished goods inventory (FGI) and raw material inventory (RMI) increased during Q4:2021-22 (Chart 3 and Table 3A).
Note- Please see the excel file for time series data.
ANNEX 1: Data Tables | Table 1: IIP*-Manufacturing and Capacity Utilisation (CU) | | Quarter | Number of responding companies | Capacity Utilisation | IIP-Manufacturing
(Quarterly Average) | De-trended Quarterly IIP-Manufacturing | | Q4:2020-21 | 557 | 69.4 | 136.5 | 7.3 | | Q1:2021-22 | 640 | 60.0 | 119.1 | -10.6 | | Q2:2021-22 | 728 | 68.3 | 131.6 | 0.8 | | Q3:2021-22 | 757 | 72.4 | 135.0 | 3.2 | | Q4:2021-22 | 727 | 75.3 | 138.1 | 5.7 | | *: Index of Industrial Production (Base: 2011-12) |
| Table 2A: Order Books Growth (Q4:2020-21 to Q4:2021-22) | | Quarter | Number of companies | Q-o-Q Growth # (per cent) ** | Y-o-Y Growth # (per cent) | | Backlog Orders | New Order Book | Pending Orders | Backlog Orders | New Order Book | Pending Orders | | Q4:2020-21 | 85 | 7.6 | 2.3 | -1.8 | 7.2 | 32.9 | 2.3 | | Q1:2021-22 | 120 | -0.5 | -19.0 | 5.3 | 11.8 | 105.7 | 17.3 | | Q2:2021-22 | 184 | 10.8 | 2.1 | 3.9 | 10.2 | 16.9 | 15.1 | | Q3:2021-22 | 205 | 3.5 | 10.5 | 7.8 | 19.5 | 20.9 | 20.5 | | Q4:2021-22 | 207 | 4.7 | 5.6 | 4.6 | 14.2 | 28.4 | 25.1 | #: Growth rates are calculated using three rounds common set of companies, namely, companies responded in the current quarter, one quarter ago and the same quarter a year ago.
**: Not seasonally adjusted. |
| Table 2B: Average Size of Order Books (Q4:2020-21 to Q4:2021-22) | | Quarter | Number of companies | Average Amount (₹ Crores) | | Backlog Orders | New Order Book | Pending Orders | | Q4:2020-21 | 85 | 199.8 | 243.4 | 196.3 | | Q1:2021-22 | 120 | 188.1 | 171.0 | 197.8 | | Q2:2021-22 | 184 | 197.9 | 195.7 | 207.4 | | Q3:2021-22 | 205 | 182.3 | 224.4 | 196.6 | | Q4:2021-22 | 207 | 176.3 | 222.4 | 184.2 |
| Table 3A: Inventory to Sales Ratios (Q4:2020-21 to Q4:2021-22) | | Quarter | Number of Companies | Ratio (per cent) # | | Total Inventory / Sales | Finished Goods Inventory / Sales | Raw Material Inventory / Sales | | Q4:2020-21 | 418 | 57.5 | 22.0 | 27.2 | | Q1:2021-22 | 478 | 78.6 | 29.5 | 36.9 | | Q2:2021-22 | 537 | 60.5 | 20.9 | 29.4 | | Q3:2021-22 | 681 | 58.1 | 22.4 | 28.0 | | Q4:2021-22 | 651 | 65.2 | 24.7 | 30.5 | | #: Weighted average of industry level ratios using GVA as weights |
| Table 3B: Average Sales and Inventories (Q4:2020-21 to Q4:2021-22) | | Quarter | Number of Companies | Average Amount (₹ Crores) | | Sales | Total Inventory | Finished Goods Inventory | Work in progress Inventory | Raw Material Inventory | | Q4:2020-21 | 418 | 959.2 | 461.2 | 183.3 | 66.2 | 211.6 | | Q1:2021-22 | 478 | 869.2 | 489.7 | 208.8 | 79.7 | 201.2 | | Q2:2021-22 | 537 | 1012.6 | 494.4 | 200.0 | 78.6 | 215.8 | | Q3:2021-22 | 681 | 1027.9 | 465.0 | 193.5 | 62.0 | 209.5 | | Q4:2021-22 | 651 | 1123.2 | 530.2 | 219.2 | 79.8 | 231.2 | Note: The computations of order book growths and inventory to sales ratios are based on methodology given in the RBI press release dated October 8, 2021 (link: https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=20650) and not on the basis of averages given in the above tables.
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