OBICUS Survey on the Manufacturing sector - Q2:2019-20
Today, the Reserve Bank released the results of the 47th round of the Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the quarter July-September 2019 covering 866 manufacturing companies. The survey provides a snapshot of demand conditions in India’s manufacturing sector1.
Highlights:
1) Capacity Utilisation (CU): At the aggregate level, CU declined to 69.1 per cent in Q2:2019-20 from 73.6 per cent in the previous quarter, broadly tracking the de-trended index of industrial production (IIP) (Chart 1). Seasonally adjusted CU also declined by 4.5 percentage points to 70.0 per cent in Q2:2019-20.
2) Order Books: Orders received in Q2:2019-20 were lower compared with level a year ago, though they were higher as compared with the new orders in the previous quarter (Chart 2).
3) Finished Goods Inventory (FGI) to Sales Ratio: The FGI to sales ratio declined marginally in Q2:2019-20 as FGI fell at a faster pace than sales (Chart 3).
4) Raw Material Inventory (RMI) to Sales Ratio: The RMI to sales ratio fell sharply in Q2:2019-20, mainly reflecting moderation in RMI (Chart 3).
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
Q2:2018-19
818
74.8
129.9
0.3
Q3: 2018-19
860
75.9
132.2
1.5
Q4: 2018-19
802
76.1
136.5
4.7
Q1:2019-20
781
73.6
130.3
-2.5
Q2:2019-20
819
69.1
129.5
-4.4
*: Index of Industrial Production (Base: 2011-12)
Table 1.2: Order Books (Q2:2018-19 to Q2:2019-20) (Based on common set of 93 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
Q2:2018-19
107.9
149.8
119.0
-3.5
18.2
10.4
34.8
13.1
13.6
Q3: 2018-19
119.1
139.8
116.8
10.4
-6.7
-1.9
13.6
10.3
2.2
Q4: 2018-19
116.6
153.8
121.3
-2.1
10.0
3.9
1.8
12.2
8.5
Q1:2019-20
121.3
139.8
122.1
4.0
-9.1
0.7
8.5
10.3
13.3
Q2:2019-20
121.9
143.0
132.5
0.6
2.3
8.5
13.0
-4.5
11.3
**: As required for calculating growth rates in recent 5 quarters. ***: Not seasonally adjusted
Table 1.3: Average Sales and Inventories (Q2:2018-19 to Q2:2019-20) (Based on common set of 347 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
Q2:2018-19
727.5
382.4
119.5
50.9
212.0
52.6
16.4
29.1
Q3:2018-19
742.0
357.8
106.7
38.8
212.2
48.2
14.4
28.6
Q4: 2018-19
692.8
368.5
113.4
41.9
213.2
53.2
16.4
30.8
Q1:2019-20
695.3
378.3
113.3
43.2
221.7
54.4
16.3
31.9
Q2: 2019-20
689.1
340.4
107.5
41.7
191.2
49.4
15.6
27.7
RM - Raw Material; WiP - Work in progress; FG - Finished Goods; Inv – Inventory.
1 The survey responses are voluntary. The 46th round of the OBICUS covering 818 manufacturing companies with reference period as April-June 2019 was released on the RBI website on October 04, 2019.
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