Production of major companies grew by an average 9.6% in the last calendar year that ended in March.
According to a report by the Central Bank of Iran on manufacturing trends, the overall production index in the first to fourth quarters was up by 3.1%, 13.2%, 9.5%, and 12.8%, respectively.
According to Shada, the Economy Ministry news outlet, out of 24 large industries reviewed, 23 showed increase in production. Those topping the list motor vehicles, trailers, and semi-trailers, with growth rates of 45.8% and 31.8% in throughout the year.
Production of machinery and equipment had an average growth rate of 17.5%, which was billed as “promising” by the s news outlet.
One of the sectors that faced hurdles in the first half of last year was the key food industry. In the first and second quarters the food industry plunged by 7.4% and 5.4%, respectively. However, in Q3 and Q4, growth rates of 7.6% and 15% were recorded and the average annual growth of the industry was 2.5%.
Despite cuts in gas feedstock to petrochemical companies, the Q4 or winter production statistics for the group showed from the previous winter.
The report referred to growth in the output index for Q4, saying that it demonstrates positive trends and significant improvement in the national economy.
Pharmaceuticals were alone in posting decline in annual output with a massive 5.1% drop compared to the year before.
Data about market value of industries by the end of last year showed that chemical companies accounted for nearly 24% of the total with their capitalization at 21,964 trillion rials ($43.9 billion).
Basic metals were next with 17.3% followed by ore mineral extraction group (9%), industrial holding companies (7.7%), petroleum products (7.1%), investment companies (5.6%), banks and credit institutions (5%), auto and parts (3.8%), pharmaceuticals (2.36%) and insurance and pension funds (2.18%).
Leading the Pack
The top ten largest industries accounted for 84.26% of the market value.
Pharmaceuticals recorded the largest increase in value terms compared to the other majors at 71% y/y. Auto and parts group ranked second as their market value jumped 63% on the same period last year followed by petroleum products and holding companies.
Of the 39 industrial groups in the capital market, 37 reported profit to March 21. Chemical products topped the list with 1,437 trillion rials ($19.9 million) in sales.
In another report the Monetary and Banking Research Institution said, industrial companies listed on the stock exchange saw 8.1% growth in production in the month to March 20, compared to the same period last year. It was unchanged on the month before.
A key factor contributing to IPI growth in recent months is the notable increase in production in the automotive and auto part industry.
However, the production index of the chemical industry, the largest in the country, saw no significant change. The food industry was the only industry with negative growth declining by a massive 6% in the month after falling 0.3% in the preceding month.
Annual IPI for the auto and spare part industries grew 41.3% y/y in the month to March 20. It was down 4.1% in the previous month.
Likewise, metals grew 20.9% during the month from the same time last year. In the previous month the sector grew 23.4%. The textile industry index registered 13.9% growth down from 14.8% a month earlier.
Electronic industries were up 7% on the corresponding period last year – up 17.1% on the month before. The machinery and equipment index improved 4.1%, but was way down from 17.7% a month before.
Basic metals IPI index saw a 4.1% annual increase but declined 4.1% in the previous month.
Non-metallic minerals, oil derivatives, tire and plastic, and pharmaceuticals also showed increase in production. The chemical industry output remained unchanged in the month after logging 0.4% growth the month before.
