Steering a Titan Through Economic Tides

Mizbani’s insights revealed a company meticulously navigating a complex economic landscape. As one of Iran’s largest companies, Mobarakeh Steel operates on a massive scale, managing financial transactions in both Iranian rials and foreign currencies. The CFO explained that in recent years, working capital management has become a key priority. To maintain a healthy balance sheet, the finance department uses specially designed dashboards to keep a close eye on receivables and payables, ensuring smooth operations despite market fluctuations.

Mitigating Risks and Aligning Cash Flow

The CFO highlighted that the company’s greatest challenge lies in managing the high cost of raw materials and energy. With these expenses rising sharply and sales revenue not keeping pace, Mobarakeh Steel has had to get creative. The solution, Mizbani says, is strategic alignment: a strong collaboration between the procurement and finance teams to ensure that payments for materials and energy are synchronized with cash inflows from product sales. The company also prepares detailed financial reports, including an annual cash flow forecast that’s checked weekly against actual operations to catch and correct any deviations promptly.

A Nation of Shareholders

Perhaps the most striking revelation was the company’s unique ownership structure. Mizbani confirmed that over half of all Iranians are shareholders, thanks in part to institutional holdings and the widespread distribution of «Justice Shares.» This broad ownership base places a significant responsibility on the company to deliver strong returns. To meet this commitment, Mobarakeh Steel has focused on maximizing shareholder value, especially since its public listing. The company’s strategy has included increasing dividend distributions in recent years, a move that has helped build investor confidence even during challenging economic times. This broad-based ownership not only makes the company a national asset but also creates a direct link between its success and the financial well-being of a majority of the population.

A Legacy of Diligence

Mizbani also touched on the company’s efforts to ensure compliance with financial regulations, both domestic and international. The finance unit conducts daily monitoring of all transactions to adhere to strict banking, anti-money laundering, and central bank directives. This rigorous oversight, combined with a proactive approach to risk management, allows the company to secure financing for its ambitious development projects, primarily through domestic and international banks, and via capital market instruments like bonds. Mobarakeh Steel’s careful financial stewardship is not just a business strategy; it’s a commitment to its diverse and extensive base of stakeholders, from major investors to the average Iranian citizen.