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Order Books, Inventories and Capacity Utilisation Survey on the Manufacturing sector for Q1:2024-25

Today, the Reserve Bank released the results of its 66th round of the quarterly Order Books, Inventories, and Capacity Utilisation Survey (OBICUS), which was conducted during Q2:2024-25 and covered 905 manufacturing companies. The survey1 provides a snapshot of the demand conditions in India’s manufacturing sector during April-June 2024.

Highlights:

  • At the aggregate level, capacity utilisation (CU) in the manufacturing sector recorded a seasonal decline to 74.0 per cent in Q1:2024-25 from 76.8 per cent in the previous quarter. The seasonally adjusted CU (CU-SA) increased by 120 basis points over this period to 75.8 per cent (Chart 1 and Table 1).
Chart 1
  • Respondents reported an increase in growth of new orders received during Q1:2024-25 on an annual (y-o-y) basis, even as they recorded seasonal decline on a sequential (q-o-q) basis ( Chart 2 and Table 2A).
Chart 2
  • As a ratio to sales, both the finished goods inventory (FGI) and the raw material inventory2 (RMI) remained stable during Q1:2024-25 (Chart 3 and Table 3A).
Chart 3

Note-Please see the excel file for time series data.

ANNEX 1: Data Tables

Table 1: Capacity Utilisation

Quarter

Number of responding companies

Capacity Utilisation

Seasonally Adjusted
Capacity Utilisation

  Q1:2023-24

665

73.6

75.4

Q2:2023-24

752

74.0

74.5

Q3:2023-24

761

74.7

74.6

Q4:2023-24

832

76.8

74.6

Q1:2024-25

839

74.0

75.8

Note: The Seasonally Adjusted Capacity Utilisation is calculated using X13-ARIMA-SEATS (Signal Extraction in ARIMA Time Series) taking the Covid-19 lockdown quarter Q1:2020-21 as an additive outlier.

 

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

Q1:2023-24

244

-5.2

-1.3

-4.5

22.7

1.5

9.3

Q2:2023-24

245

3.1

3.5

5.6

24.1

7.3

15.7

Q3:2023-24

233

4.7

-0.4

4.1

13.7

10.1

19.0

Q4:2023-24

224

3.4

10.0

0.2

18.9

6.8

10.4

Q1:2024-25

238

2.0

-0.4

7.2

11.2

12.3

16.2

#: Growth rates are calculated using common set of companies responding in three survey rounds, namely the current quarter, one quarter ago and the corresponding quarter a year ago.

 

Table 2B: Average Size of Order Books

Quarter

Number of companies

Average Amount (` crore)

Backlog Orders

 New Order Book

Pending Orders

Q1:2023-24

244

212.0

236.2

201.2

Q2:2023-24

245

227.7

248.6

240.4

Q3:2023-24

233

228.6

252.1

238.0

Q4:2023-24

224

221.6

267.2

222.2

Q1:2024-25

238

266.4

292.5

285.8

 

Table 3A: Inventory to Sales Ratios

Quarter

Number of Companies

Ratio (per cent) ##

Total Inventory / Sales

Finished Goods Inventory / Sales

Raw Material Inventory / Sales

Q1:2023-24

622

63.0

24.8

24.4

Q2:2023-24

688

65.9

24.6

24.4

Q3:2023-24

714

67.7

26.8

24.8

Q4:2023-24

803

65.4

26.6

24.3

Q1:2024-25

800

67.4

26.1

24.8

##: Weighted average of industry level ratios using Gross Value Added as weights.

 

Table 3B: Average Sales and Inventories

Quarter

Number of Companies

Average Amount (` crore)

Sales

Total Inventory

Finished Goods Inventory

Work in progress Inventory

Raw Material Inventory

Q1:2023-24

622

1163.1

534.3

226.9

62.8

195.7

Q2:2023-24

688

1091.7

608.1

226.7

120.4

203.8

Q3:2023-24

714

1069.6

581.4

226.0

110.3

187.5

Q4:2023-24

803

1185.6

585.0

228.8

104.9

197.8

Q1:2024-25

800

1016.8

551.0

192.7

106.5

195.5

Note: The methodology for computations of order book growth and inventory to sales ratios is given in the RBI press release dated October 8, 2021 (link: https://website.rbi.org.in/web/rbi/-/publications/obicus-survey-on-the-manufacturing-sector-for-q1-2021-22-20650). Please also see footnote 2 on direct estimation of RMI since 53rd round of the survey.

 


[1] The survey responses are voluntary, and the results reflect the views of the respondents, which are not necessarily shared by the Reserve Bank. Results of the previous survey round were released on the Bank’s website on August 08, 2024.

[2] The estimates of raw materials inventory (including stores and spares, loose tools, stock-in-trade and other inventories) were arrived at by netting out finished goods inventory and work-in-progress inventory from total inventory. Since the 53rd round of the survey ( i.e., Q4:2020−21), however, direct data on raw material inventory (excluding stores and spares, loose tools, stock-in-trade and other inventories) are also being collected from survey respondents, in parallel. Estimates of raw materials inventory based on the additional reporting are presented here.

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