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Date : Sep 30, 2022
Order Books, Inventories and Capacity Utilisation Survey on the Manufacturing sector for Q1:2022-23

Today, the Reserve Bank released the results of the 58th 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 April-June 2022. The survey covered 734 manufacturing companies.

Highlights:

  • At the aggregate level, the capacity utilisation (CU) for the manufacturing sector recorded seasonal decline to 72.4 per cent in Q1:2022-23 from 75.3 per cent in the previous quarter. (Chart 1 and Table 1)

  • The seasonally adjusted CU increased to 74.3 per cent in Q1:2022-23 from 73.0 per cent in Q4:2021-22.

Chart 1: Capacity Utilisation (CU) and De-trended IIP (Manufacturing)
  • Manufacturing companies have been receiving higher new orders; Sequential (q-o-q) growth for the last four successive quarters have been positive as the adverse impact of the COVID-19 pandemic has been waned over the period (Chart 2 and Table 2A)

Chart 2: Growth in New Orders
  • The raw material inventory (RMI) to sales ratio increased during Q1:2022-23 consistent with improving demand conditions; finished goods inventory (FGI) to sales ratio has remained stable, barring the period, which was majorly affected by the pandemic-related restrictions. (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
Q1:2021-22 640 60.0 119.1 -10.5
Q2:2021-22 728 68.3 131.6 0.4
Q3:2021-22 757 72.4 135.0 1.9
Q4:2021-22 727 75.3 138.1 3.3
Q1:2022-23 692 72.4 134.3 -2.0
*: Index of Industrial Production (Base: 2011-12)

Table 2A: Order Books Growth (Q1:2021-22 to Q1:2022-23)
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
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
Q1:2022-23 233 0.3 3.4 4.2 15.2 38.7 10.3
#: 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 (Q1:2021-22 to Q1:2022-23)
Quarter Number of companies Average Amount (₹ Crores)
Backlog Orders New Order Book Pending Orders
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
Q1:2022-23 233 221.7 244.8 231.5

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

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

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.


1 The survey responses are voluntary. Results of the previous survey round were released on the Bank’s website on August 05, 2022.


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