India's top motorcycle maker, Hero Honda Motors Ltd, said on Tuesday quarterly profit fell 20 per cent, as firmer interest rates, volatile raw material prices and fierce competition weighed on sales.
New Delhi-based Hero Honda said net profit fell to 1.90 billion rupees ($47 million) for the fiscal first quarter to end-June from 2.38 billion reported a year earlier.
The result was slightly better than a consensus forecast of 1.84 billion rupees in a Reuters poll of 10 analysts.
Hero Honda, in which India's Munjal family and Munjal family each hold 26 per cent, sold 802,853 units in the April-June quarter, a drop of 3.6 per cent from a year ago.
Shares in Hero Honda, valued at $3.4 billion, gained 0.5 per cent in the quarter, compared with a 2.7 per cent decline for the auto share index and a 12 per cent gain for the main share index.