Today, the Reserve Bank released the results of its 62nd round of the quarterly Order Books, Inventories and Capacity Utilisation Survey (OBICUS) conducted during Q2:2023-24 covering 707 manufacturing companies. The survey1 provides a snapshot of demand conditions in India’s manufacturing sector during April-June 2023. Highlights: - At the aggregate level, capacity utilisation (CU) in the manufacturing sector recorded a seasonal decline to 73.6 per cent in Q1:2023-24 from 76.3 per cent in the previous quarter (Chart 1 and Table 1). The seasonally adjusted CU for Q1:2023-24 improved by 130 basis points (bps) from its level in the previous quarter and stood at 75.4 per cent.
- Manufacturers reported sequential (q-o-q) decline in new orders which is a seasonal phenomenon. On an annual (y-o-y) basis, however, order books growth has been moderating but remained positive (Chart 2 and Table 2A).
- The finished goods inventory (FGI) to sales ratio increased marginally in Q1:2023-24 due to some moderation in sales while the raw material inventory (RMI) to sales ratio declined marginally from its level in the previous quarter on the back of drawdown in raw materials (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 | | Q1:2022-23 | 692 | 72.4 | 134.3 | 0.3 | | Q2:2022-23 | 745 | 74.0 | 133.6 | -1.3 | | Q3:2022-23 | 727 | 74.3 | 137.0 | 1.1 | | Q4:2022-23 | 705 | 76.3 | 143.5 | 6.7 | | Q1:2023-24 | 665 | 73.6 | 140.8 | 3.0 | | *: Index of Industrial Production (Base: 2011-12) |
| Table 2A: Order Books Growth | | 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 | | 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 | | Q3:2022-23 | 277 | 1.8 | 0.5 | 3.9 | 14.7 | 8.4 | 18.4 | | Q4:2022-23 | 261 | 3.9 | 7.4 | 2.9 | 15.8 | 6.0 | 15.3 | | Q1:2023-24 | 244 | -5.2 | -1.3 | -4.5 | 22.7 | 1.5 | 9.3 | #: 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 | | Quarter | Number of companies | Average Amount (₹ Crores) | | Backlog Orders | New Order Book | Pending Orders | | Q1:2022-23 | 233 | 221.7 | 244.8 | 231.5 | | Q2:2022-23 | 265 | 208.8 | 307.9 | 232.4 | | Q3:2022-23 | 277 | 205.0 | 212.2 | 213.1 | | Q4:2022-23 | 261 | 215.6 | 225.4 | 221.9 | | Q1:2023-24 | 244 | 212.0 | 236.2 | 201.2 |
| Table 3A: Inventory to Sales Ratios | | Quarter | Number of Companies | Ratio (per cent) ## | | Total Inventory / Sales | Finished Goods Inventory / Sales | Raw Material Inventory / Sales | | Q1:2022-23 | 630 | 69.6 | 24.6 | 33.5 | | Q2:2022-23 | 721 | 61.8 | 22.6 | 29.6 | | Q3:2022-23 | 675 | 60.6 | 21.9 | 30.0 | | Q4:2022-23 | 658 | 64.1 | 23.2 | 32.5 | | Q1:2023-24 | 622 | 63.0 | 24.8 | 29.3 | | ##: Weighted average of industry level ratios using GVA as weights |
| Table 3B: Average Sales and Inventories | | Quarter | Number of Companies | Average Amount (₹ Crores) | | Sales | Total Inventory | Finished Goods Inventory | Work in progress Inventory | Raw Material Inventory | | 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 | | Q3:2022-23 | 675 | 1106.7 | 519.9 | 195.5 | 67.1 | 257.4 | | Q4:2022-23 | 658 | 1172.2 | 546.6 | 225.4 | 62.7 | 258.5 | | Q1:2023-24 | 622 | 1163.1 | 534.3 | 226.9 | 62.8 | 244.5 | Note: 1. 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. 2. The estimates of inventory of raw materials (including stores and spares, loose tools and stock-in-trade) are arrived at by netting out finished goods inventory and work-in-progress inventory from total inventory. The survey has also started collecting direct data on raw material inventory, which will be included in the regular survey results once the reporting coverage of the new item is satisfactory.
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