Capacity utilisation of cos declined marginally in Q2

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Capacity utilisation by the companies in the manufacturing sector has recorded a fractional decline in the second quarter of the fiscal, an RBI sponsored survey revealed.
However, the average new orders grew marginally in the quarter of 2015-16 from its level in the previous three months, though it remained unchanged from its level a year ago, said the latest 'Quarterly Order Books, Inventories and Capacity Utilisation Survey (OBICUS) July-September 2015'.
"At the aggregate level, capacity utilisation recorded fractional decline in Q2 2015-16 over the previous quarter and stood at 70.6 per cent.
"It was also lower than the level during the same quarter of the previous year. There is broad co-movement between capacity utilisation and de-trended IIP manufacturing," the results showed.

On the inventory to sales ratio, the survey said finished goods inventory to sales ratio remained steady in the second quarter.
The raw material inventory to sales ratio (RMI/S) increased in July-September period and stood at a higher level as compared to the level observed in the year-ago period.

The survey captures actual data from the companies in the manufacturing sector.
The survey, which is the 31st round in the series, captures data for the second quarter of 2015-16.
In all, 1,104 manufacturing sector companies responded in this round of the survey.
The analysis is based on the data on order books, inventory levels for raw materials and finished goods, and capacity utilisation, received from a common set of companies.

The apex bank said the survey results are those of the respondents and are not necessarily shared by RBI.