MUMBAI, July 29 (Reuters) - HeroMotors , India's largest motorcycle maker, on Thursday reported a 1.6 percent drop in quarterly net profit, below expectations as high raw material costs and other expenses impacted earnings.
The company, in which Japan'sMotor Corp and India's Hero group hold 26 percent each, reported net profit of 4.92 billion rupees ($105.6 million) from 5 billion a year earlier.
Net sales rose to 42.65 billion rupees from 38.11 billion.
A Reuters poll of brokerages had forecast net profit at 5.97 billion rupees on revenue of 43.11 billion rupees. [ID:nSGE66L09V]
The company sold 1.23 million motorcycles and scooters in the June quarter, up 10.3 percent from a year earlier.
Shares in Hero Honda, valued at $8 billion, have risen 8 percent so far this year, compared to a near 13 percent rise in the sector index and a 2.8 percent rise in the main index . ($1=46.6 rupees) (Reporting by Janaki Krishnan; editing by Surojit Gupta)