Mahindra reports a profit of 8 pct at Rs 758.49 cr

For the quarter that ended on September 30, Mahindra & Mahindra registered a jump of 7.90 per cent in its net profit at Rs 758.49. The auto major had registered a net profit of Rs 702.94 crore in the same period earlier year, said Mahindra & Mahindra in one of its statements. During the second quarter, the total income of the company jumped by 19.23 per cent to Rs 5,434.36 crore from Rs 4,557.77 crore in the corresponding period an year-ago, added M & M. However, on the BSE, the shares of the company have moved 2.83 per cent down in the noon trade at Rs 712.75 a piece.

Recently, it was reported that the troubled company of South Korea, Ssangyong Motors is in its final stage of acquisition and has to be taken over by Mahindra and Mahindra. The South Korean company has now got the final approval for sale. Over the same deal, the Fair Trade Commission has already provided its consent and it says that the South Korean car makers will be sold to M&M.

Other than Tata Motors, Mahindra and Mahindra will be the second in South Korea to take over a South Asian company. In the year 2004, Tata Motors had brought the truck manufacturing unit - Daewoo Commercial Vehicle. Mahindra and Mahindra is one of the leading commercial vehicle makers of India and it has got a reputed name in the auto market. According to the Fair Trade commission, the new venture between Ssangyong Motors and M&M will increase the export of Ssangyong to an important stage. The agreement will also help in creating competition in the auto market. The South Korean car maker Ssangyong produces vehicles of low cost but powerful Sports Utility Vehicles. It also makes sedans.

Ssangyong Motors came into business in the year 1957. It used to manufacture automobiles. Because of the global economic recession, Ssangyong Motors became  one of the severely hit company. Due to this problem of recession, the company went through a downfall but was provided protection from its creditors  in the year 2009 by the court.

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