The Monetary and Banking Research Institute (MBRI) says the output of manufacturing companies in the stock market has increased.
In its latest report it reflected on the monthly performance of 280 companies in the Tehran Stock Exchange and Iran Fara Bourse, the junior equities exchange.
Overall industrial production index (IPI) in the seventh calendar month to January 22 was up 7.7% compared to the corresponding month last year.
The companies account for almost half the industrial production in Iran and their performance is seen as a gauge to track domestic manufacturing trends, the MBRI said on its website.
Juxtaposing monthly data show that the decline seen up until April reversed starting in the third calendar month to June 21.
A glance at sectoral indices showed that the IPI jumped in auto, metal products and textile sectors while food products and plastic and tire industries declined.
Annual IPI for the auto and spare part industries grew 28.8% Y/Y in the month to Jan. 22. It was up 5.6% in the previous month. The textile index improved in the month by 18.3% -- up from 17% a month before. Machinery and equipment industries grew 15% in the month down from the 15.6% rise a month ago.
Likewise, metal products grew 9.8% during the month under review from the same time last year. In the previous month the sector logged the same increase.
The oil derivatives industries index was up 9.3% compared to the same period last year. However, its output declined 10.4% on the month before.
Paper companies IPI index saw a 7.9% annual increase – the same as the previous month. Non-metallic minerals, oil derivatives, electronic products, and pharmaceuticals also showed increase in production in the month to January 22.
However, the food industry fell 4.8% in the month after losing 17.2% in the preceding month. This is while food industry output shot up 25% compared with the month before, topping the list of industries in terms of monthly growth in output.
Textile industry output increased by 13.8% on the previous month. Metal products were next posting 12.9% growth on the month to December 22.
Oil derivatives' output fell 10.4% on the month before, recording the largest monthly decline among all listed industries.
Inventories Down 5.1%
The MBRI said inventories were down in the calendar month to January 22 implying relatively robust demand. The overall inventory index dropped 4.3% to the month and was down 5.1% in the three months ending January 22. It was down 3.2% y/y.
Auto companies posted the biggest drop in inventories, down 28.4% year-on-year and 37.9% during the three months to January 22. Chemical inventories were up 4.8% during the year to January 22, topping the list. Food products topped the list in terms of changes in inventory in three months to Jan. 22 climbing 6.5%.
Profitmaking
The report also took stock of profitmaking of the listed industries. Not all listed companies were homogenous.
Basic metal companies were disappointing and topped the worst performers posting 10.6% decline in profit during the first three quarters of the current fiscal year that ends in late March.
Of the 280 companies under review, 36 were loss-making in the first nine months of the current fiscal year. However, the number was an improvement on the same period last year.
Per the report most companies reported profit in nine months ending December 21. The oil derivative sector showed 104% increase on the same period last year topping the growth list. The sector's profit increased by 172.8% in the first half of the current year and was 218% higher in the third quarter of the fiscal year.
It was followed by food industries with 66% growth in the first three quarters – posting 58.2% increase in profit during the first half of the year.
After the two groups were the auto industry and auto part makers with 58.3% growth in first three quarters. Automakers profit jumped 87% in the first half of the year, whereas growth was near 37% during the first quarter of the year.
Chemicals had the highest number of loss-making units in the nine months with eight companies, the MBRI said.
