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Mahindra's Quarterly Profit Slides On Booking Loss For South Korean Unit

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.

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Mahindra and Mahindra Ltd 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.

Mahindra is currently reviewing its businesses and plans to retain only those ventures with the potential to be profitable.

The company has canned its joint venture with Ford Motor Co and is in talks to sell its stake in automaker Ssangyong Motor.

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.

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.

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 had reported last month it recorded a profit but quarterly margins dropped due to rising costs.

(Reuters)