Ssangyong To Register First Annual Profit Under Mahindra Brand

Ssangyong the South Korean, Motor company, has reported profits in the previous quarters of FY13.They are going to announce this years earnings and will report a first full year profit, since Mahindra acquired it.

The South Korean based company follows calendar year as financial year.

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An aggressive business model in the Korean market has helped in achieving higher sale units. The company sold 145,649 units in 2013, owing to new launches and facelifts of existing models.

An increase of 20.7% units sold over last year. They exported a record 80,000 units, an increase of 11.9% from the following year.

Their key market, which increased their ales were Russia and China. In 2011 Ssangyong reported selling 74,350 vehicles.

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In 2013 Korando alone contributed to 73.9% of sales. The Korando Turismo, went up by 637% over the previous year.

Ssangyong reported net profit during April-June 2013 and the July-September 2013 was Rs 37.7 crore and Rs 2.8 crore respectively.

It also faced losses of Rs. 98 crore and Rs. 65.3 crore in the same periods last year. The company registered a bump of Rs. 4,510 crore in the April-June quarter, an increase of 34.9%.

During July-September period the company recorded revenue of Rs 4,674 crore, a jump of 37.9%.

Ssangyong cut down its manforce by 40%, after Mahindra took over the South Korean company. This was an important factor, helping it rationalise cost.

Ssangyong is also planning to increase export to Russia as well as India. They Plan to double their sale units by 2016. Attempts to sell their products in South America, Africa and parts of Asia are on the cards.