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UPDATE 1-Mahindra's quarterly profit slides on booking loss for South Korean unit

· 02/05/2021 03:18
UPDATE 1-Mahindra's quarterly profit slides on booking loss for South Korean unit

Adds industry details, one-time charge

- 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. 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. 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. 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. 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.

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. nL4N2K32FO

($1 = 72.9225 Indian rupees)

(Reporting by Chandini Monnappa in Bengaluru; Editing by Krishna Chandra Eluri)

((Chandini.M@thomsonreuters.com; +918061822697;))