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Date : Feb 08, 2023
Order Books, Inventories and Capacity Utilisation Survey on the Manufacturing sector for Q2:2022-23

Today, the Reserve Bank released the results of its 59th round of the quarterly Order Books, Inventories and Capacity Utilisation Survey (OBICUS) conducted during Q3:2022-23 covering 800 manufacturing companies. The survey1 provides a snapshot of demand conditions in India’s manufacturing sector during July-September 2022.

Highlights:

  • The aggregate level capacity utilisation (CU) for the manufacturing sector improved to 74.0 per cent in Q2:2022-23 from 72.4 per cent in the previous quarter. The seasonally adjusted CU for Q2:2022-23 also increased by 20 basis points (bps) to 74.5 per cent from its level in the previous quarter (Chart 1 and Table 1).
Chart 1: Capacity Utilisation (CU) and De-trended IIP (Manufacturing)
  • New orders received by manufacturing companies during Q2:2022-23 were close to their level in the previous quarters but they were substantially higher than that in the corresponding quarter a year ago. (Chart 2 and Table 2A).
Chart 2: Growth in New Orders
  • Both raw material inventory (RMI) to sales and finished goods inventory (FGI) to sales ratios declined in Q2:2022-23 as compared to the previous quarter, which was commensurate with higher sales growth and similar level of new orders on sequential basis (Chart 3 and Table 3A).
Chart 3: Inventories to Sales Ratios

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
Q2:2021-22 728 68.3 131.6 1.6
Q3:2021-22 757 72.4 135.0 4.5
Q4:2021-22 727 75.3 138.1 7.0
Q1:2022-23 692 72.4 134.3 2.6
Q2:2022-23 745 74.0 133.7 1.4
*: Index of Industrial Production (Base: 2011-12)

Table 2A: Order Books Growth (Q2:2021-22 to Q2:2022-23)
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
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
Q1:2022-23 233 0.3 3.4 4.2 15.2 38.7 10.3
Q2:2022-23 265 4.6 -0.1 10.8 11.4 25.9 20.1
#: 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 (Q2:2021-22 to Q2:2022-23)
Quarter Number of companies Average Amount (₹ Crores)
Backlog Orders New Order Book Pending Orders
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
Q1:2022-23 233 221.7 244.8 231.5
Q2:2022-23 265 208.8 307.9 232.4

Table 3A: Inventory to Sales Ratios (Q2:2021-22 to Q2:2022-23)
Quarter Number of Companies Ratio (per cent) #
Total Inventory / Sales Finished Goods Inventory / Sales Raw Material Inventory / Sales
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
Q1:2022-23 630 69.6 24.6 33.5
Q2:2022-23 721 61.8 22.6 29.6
#: Weighted average of industry level ratios using GVA as weights

Table 3B: Average Sales and Inventories (Q2:2021-22 to Q2:2022-23)
Quarter Number of Companies Average Amount (₹ Crores)
Sales Total Inventory Finished Goods Inventory Work in progress Inventory Raw Material Inventory
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
Q1:2022-23 630 1238.3 591.8 238.3 87.3 266.2
Q2:2022-23 721 1285.8 508.2 217.6 73.2 217.4

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.


1 The survey responses are voluntary. Results of the previous survey round were released on the Bank’s website on September 30, 2022.


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