On Friday, Mahindra & Mahindra reported a net loss of Rs 3,255 crore combined with that of Mahindra Vehicle Manufacturers (MVML) for the March ended quarter. In comparison, the firm posted a net profit of Rs 969 crore in the corresponding quarter last year.
During the quarter under review, revenue of the company declined by 35 percent to Rs 9,005 crore from the same period a year ago.
The company's profit took a hit because of a one-time loss of Rs 3,577.64 crore to write down of investment in Ssangyong and some other international subsidiaries.
"As announced earlier Mahindra Board had decided not to infuse any fresh capital into Ssangyong and is re-examining the business outlook of other international subsidiaries, in view of the current environment, to decide on future capital allocation," Mahindra & Mahindra said in a release.
Further, the company's profit was impacted by the nationwide lockdown that has hurt the automobile industry in general.
On a standalone basis, M&M's net loss for the March ended quarter was Rs 2,502 crore against a net profit of Rs 849 crore in the same quarter of the previous year.
Shares of the company rose over 3 percent on Friday, after the announcement of results to Rs 493.15.
M&M also said that its company's board has recommended a dividend of Rs 2.35 per share of face value Rs 5, compared to the dividend of Rs 8.50 given in the previous year.
In a separate filing, the company said that its board has give in-principle approval for the fundraising plans of Mahindra & Mahindra Financial Services Limited, its listed subsidiary, for raising an amount not exceeding Rs 3,500 crore through a Rights Issue.