Fundamental analysis of independence / the price of hasty privatization – Tejaratnews

According to Tejarat News, with the publication of Esteghlal’s 6-month financial statement in the Kodal system, the question arises whether Esteghlal, which is considered a completely loss-making club and is adding to the company’s losses day by day, has the right to enter the stock market? Either the purpose of Esteghlal’s entry into the stock exchange was to attract capital to compensate debts or to separate the ownership of Esteghlal and Persepolis clubs to obtain AFC professional license.

Examining the performance report of 6 months leading to the end of January 1401 shows that, in addition to the fact that Esteghlal did not try to improve its performance and increase profitability, the club’s income decreased during this period and suffered heavy losses.

What did Esteghlal do in the last year?

A review of Esteghlal’s annual statements indicates that the company suffered a gross loss of 64 billion tomans in the fiscal year ending July 1401, despite a 57% increase in operating income due to a large jump in the cost of operations.

In this way, the operating income of the company increased from 126 billion tomans in the fiscal year 1400 to 199 billion tomans this year.

Also, the cost of the company’s operations doubled in 1401 and reached 263 billion tomans from 132 billion tomans last year.

This heavy increase in the cost of operations this year has caused a loss of 64 billion tomans for Esteghlal in 1401.

It should be noted that the company made a gross loss of only five billion and 400 million tomans last year. It is important to mention that Esteghlal with this 83% jump in its gross loss, is it able to compensate for this loss, or are the managers of Esteghlal still trying to get help from the government to get out of this financial crisis?

Also, the net loss of the company in the fiscal year 1401 faced a jump of 542% and recorded 78 billion Tomans.

Another issue that is raised is that at the time of the underwriting of the Esteghlal and Persepolis clubs, there were many criticisms of the valuation and loss making of these two companies.

However, these two losing clubs entered the stock market, and only one question is raised, who is responsible for the losses and the loss of the capital of the shareholders of the two clubs?

The financial statements of 6 months leading to the end of December of Esteghlal also show that the company’s operating income not only did not increase, but also decreased by 90% from 110 billion tomans in the same period of 1400 to 10 billion tomans in this period.

The cost of the company’s operations has also increased by 211% and has recorded 321 billion Tomans.

All the mentioned cases caused heavy loss of 310 billion tomans of the company, which indicates the hard way of independence in 1402 fiscal year to compensate for the loss.

Also, the net loss of the company in this 6-month period is 339 billion Tomans. It should be noted that Esteghlal not only did not make a loss in the previous period, but also recognized a net profit equal to four billion and 479 million tomans.

Read more reports on the stock news page.