Indian automaker Mahindra posts quarterly profit as demand improves (updated)

KG Mobility

28/05/2021 10:17

(Adds consol loss number, details about business review)
    BENGALURU, May 28 (Reuters) - Mahindra and Mahindra Ltd
 MAHM.NS  posted a quarterly profit on Friday as demand for its
passenger vehicles and tractors picked up, sending shares of the
Indian automaker over 2% higher.
    Car makers including Mahindra saw a strong recovery in
demand for passenger vehicles in the previous quarter as
lockdowns eased and people avoided public transport due to the
pandemic.
    Profit after tax was 484.4 million rupees ($6.69 million)
for the fourth quarter ended March 31, compared to a loss of
25.02 billion rupees a year ago when it took a charge related to
its South Korean unit SsangYong Motor Co Ltd  003620.KS ,
Mahindra said http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20210205:nBSEt3c9h.
    Revenue from the auto sector rose 43% despite supply
constraints hitting sales and production.
    Mahindra has been reviewing its business to retain only
those that make money or can be profitable, and as part of that
it took a one-time hit in 2020 related to SsangYong Motor. 
    The COVID-19 pandemic and supply chain disruptions due to a
global chip crunch had hurt the automaker's performance last
year, and now pose a threat to its recovery.
    On a consolidated basis, Mahindra booked a one-time loss of
4.85 billion rupees during the quarter due to the
discontinuation of SsangYong operations.
    Bigger rival Tata Motors  TAMO.NS , which reported results
earlier this month, warned of tough times ahead amid a global
chip shortage, rising commodity prices and surging COVID-19
cases in India. urn:newsml:reuters.com:*:nL3N2N5326
    Shares of Mahindra and Mahindra, which were more than 1%
lower before results, reversed their course to rise as much as
2.3% to 848 rupees.
    
($1 = 72.4100 Indian rupees)

 (Reporting by Chandini Monnappa in Bengaluru; Editing by
Subhranshu Sahu)
 ((Chandini.M@thomsonreuters.com; +918061822697;))