Mahindra's quarterly profit slides on booking loss for South Korean unit (updated)

KG Mobility

05/02/2021 08:18

(Adds industry details, one-time charge)
    BENGALURU, Feb 5 (Reuters) - Mahindra and Mahindra Ltd
 MAHM.NS  reported a 90% slump in third-quarter profit on
Friday, as the carmaker recorded a one-time loss for its South
Korean unit Ssangyong Motor  003620.KS .
    Mahindra is currently reviewing its businesses and plans to
retain only those ventures with the potential to be profitable.
 urn:newsml:reuters.com:*:nL1N2JO1B9
    The company has canned its joint venture with Ford Motor Co
 F.N  and is in talks to sell its stake in automaker Ssangyong
Motor  003620.KS .  urn:newsml:reuters.com:*:nL4N2JB295
    Mahindra booked a one-time loss of 12.10 billion rupees
($165.93 million) related to Ssangyong Motor, the company said.
The South Korean automaker has filed for bankruptcy.
    In January, sources told Reuters Mahindra has cut more than
half of the workforce at its North American unit.  urn:newsml:reuters.com:*:nL1N2JO1B9
    The company had said last month it would increase prices of
its personal and commercial vehicles and has warned shortage of
semiconductors and rise in commodity prices remain a serious
challenge.  urn:newsml:reuters.com:*:nFWN2K503T    
    On a standalone basis, profit after tax was 309.3 million
rupees for the quarter ended Dec. 31, compared with 3.07 billion
rupees a year earlier, Mahindra said http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20210205:nBSEt3c9h.
    The company's revenue from operations rose 15.2% to 142.160
billion rupees.   
    Bigger rival Maruti Suzuki India  MRTI.NS  had reported last
month it recorded a profit but quarterly margins dropped due to
rising costs.  urn:newsml:reuters.com:*:nL4N2K32FO
    


($1 = 72.9225 Indian rupees)

 (Reporting by Chandini Monnappa in Bengaluru; Editing by
Krishna Chandra Eluri)
 ((Chandini.M@thomsonreuters.com; +918061822697;))