The lower base effect is most certainly at play and we will see it more pronounced in most companies in Q2FY22. TVS Motor, for Q4FY21 posted a 292% rise in standalone net profit at Rs.289 crore, mainly on the back of a 53% jump in revenue from operations at Rs.5322 crore. Two-wheeler sales during the quarter was up 41% in domestic market and 74% in international market.

Also in March’21, the company, for the very first time, crossed 1 lakh units milestone for two-wheelers in International Business.

On a consolidated basis, net profit was up almost 4x at Rs.320 crore on a 49% rise in revenue from operations at Rs.6132 crore.

It ended FY21 with a consolidated net profit at Rs.607 crore v/s Rs.647 crore, down 6%.

The company said that focused working capital management and improved operating performance helped the company generate free cash flow of Rs 1,887 crore, which was used to reduce the debt.

The market is super happy with this performance as it is currently the top gainer on the BSE opening over 8.5% higher at Rs.604, going on to hit a new high at Rs.661, with a mind boggling over 1.35 times jump in volumes.