Hero Honda Motors, India's largest motorcycle maker, on Thursday reported a 1.6% drop in quarterly net profit, below expectations as high raw material costs and other expenses impacted earnings.
The company, in which Japan's Honda Motor Corp and India's Hero group hold 26% each, reported net profit of Rs4.92 billion ($105.6 million) from 5 billion a year earlier.
Net sales rose to Rs42.65 billion from 38.11 billion.
A Reuters poll of brokerages had forecast net profit at Rs5.97 billion on revenue of Rs43.11 billion.
The company sold 1.23 million motorcycles and scooters in the June quarter, up 10.3% from a year earlier.
Shares in Hero Honda, valued at $8 billion, have risen 8% so far this year, compared to a near 13% rise in the sector index and a 2.8% rise in the main index.
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