(Reuters) -Hero MotoCorp, India’s top two-wheeler maker by sales, reported a slight increase in first-quarter profit on Wednesday, surprising analysts who had expected the profit to fall, as higher exports offset weak domestic sales.
The Splendor motorcycle maker recorded a profit of 11.26 billion rupees ($128.39 million) for the three months to June end, compared to 11.23 billion rupees a year ago.
Analysts had expected a profit fall on-year to 10.63 billion rupees, according to data compiled by LSEG.
Hero’s overall sales volume dropped 11% in the quarter, dragged by a 12% slump in domestic sales. Its small, but growing exports business grew 26% from a year earlier.
The company’s quarterly performance was similar to the broader Indian two-wheeler industry, which reported a 6% drop in domestic sales, while exports surged 23%.
Over the last few years, Hero has expanded overseas shipments to cover larger parts of its traditional export markets of South America and continental Africa, while also partnering with distributors in Europe.
The global business operations outperformed industry trends, company said in a statement.
Hero’s quarterly revenue fell 5.6% to 95.79 billion rupees.
With the upcoming festive season and a robust line-up of new products, the company expects demand to remain healthy in the coming quarters, Hero added.
Earlier in the day, Bajaj Auto reported better-than-expected profit on higher exports. TVS Motor Co too, topped profit estimates on the back of strong local and overseas demand.
($1 = 87.7010 Indian rupees)
(Reporting by Nandan Mandayam and Meenakshi Maidas in Bengaluru; Editing by Janane Venkatraman)
