Bucking the trend: Oil & gas, metal firms see surge in capacity utilisation

GAIL, NMDC, Hindalco, Somany Tiles, Petronet LNG and Maruti have seen big increase in this metric

In contrast to the subdued demand environment which has left many companies with low utilisation of their production capacities, a handful of companies have seen a good increase in this metric. About 10 companies, according to Edelweiss Securities’ data available to Business Standard, have seen an increase of 250 to 2,050 basis point in their capacity utilisation. Capacity utilisation indicates the extent to which a company uses its installed productive capacity. 

Continued subdued demand has led to low capacity utilisation levels for most private sector companies in recent years. Low growth in demand and, consequently, subdued capacity use means that