Packerman’s fundamental analysis / Inflation has grounded domestic production – Tejaratnews

According to Tejarat News, with the increase in the price of the dollar in the last 6 months, the production cost of tire manufacturers has increased day by day. The cost of production was so high that Mustafa Tanha, the spokesman of the Iranian Tire Industry Association, had warned against the closing of tire factories.

It should be mentioned that the price of tires did not increase in 1400, and at that time the issue of tire production being uneconomical was raised. But in 1401, the story of tire production was a little different. Because, according to Tanah, after the 30% increase in tire prices in June of last year, the price of raw materials, exchange rate and other production elements increased, and this caused a sharp decrease in the profit margin of tire production.

Will the tire industry go out of business?

Now, despite the increase in tire sales, the production cost of this product has not decreased compared to last year. This has increased concerns about the decrease in the profit margins of tire makers.

According to the spokesperson of the Iranian Tire Industry Association, in March of last year, arrangements were made to increase the price of radial tires by 20%, but this was not possible.

Also, these products have not received permission to increase their prices this year. Therefore, due to the ever-increasing production costs, the tire companies are forced to increase the sales rate, and otherwise, there will be no end other than the closing of the tire factories.

The monthly performance reports of tire companies, including Barez Industrial Group, also report that tire production has become uneconomical. Because the production and sale of this product has decreased drastically in the last two months.

This report examines the monthly performance report of Barez Industrial Group, which is traded under the symbol Packerman in the Tehran Stock Exchange, under the pretext of the possible increase in the price of tires and other related products.

The bad start of our Packer in 1402

Packerman’s monthly performance report in April this year shows that the company could not increase its production during the mentioned period.

As it is clear in the annual graph of Barez Industrial Group’s production amount, the company’s production amount in April compared to March 1401 decreased by about 17% and reached 6,649 tons. This number has increased by 29% compared to the production of 5,19 tons in April last year.

Also, the sales figures of this report are also the same. Because the amount of packer sold in April this year reached 5 thousand 83 tons with a decrease of 35% compared to the previous month. Of course, this number has increased by about 25% compared to the sale of 4,700 tons in the same period last year.

The drop in the group’s income is obvious

It should be mentioned that the 35% decrease in the company’s sales compared to March 1401 led to a drop in Packerman’s income in this month. In this way, the company’s income increased from 708 billion tomans in March last year to 478 billion tomans in April this year.

Of course, it should be noted that this month the company has sold its products about 1.2% more expensive than the previous month. But still he could not stop his heavy loss.

Because with the increase in the price of the dollar and the expectation created, the production costs are increasing day by day. This has led to uneconomical production in the past years, and practically increasing production and sales is not economical for producers.

It should be seen with the increase in the sales rate of the products, whether the company can return to the tire production chain and improve its financial statements or not?