The company, 26 per cent owned by Japan's Honda Motor Co, reported a net profit of 3 billion rupees ($61 milion) for its fiscal third quarter, with net sales rising 4.8 per cent to 28.74 billion rupees.

A Reuters poll of brokerages had forecast net profit at 2.86 billion rupees on revenues of 28.7 billion rupees.

"We will carry the momentum forward. We're going to finish the year with a high single-digit growth," its Managing Director and Chief Executive, Pawan Munjal said on a television channel.

"Volumes are coming down. They are going to face pressure," said Manish Gupta, an analyst with BNP Paribas.

Hero Honda's closest rival, Bajaj Auto Ltd, last week reported a 23 per cent drop in net profit for its fiscal third quarter as a lack of financing and high interest rates crimped demand.

Hero Honda was not as affected, as 60 per cent of its revenues come from rural markets, where purchase are less reliant on loan financing than in urban areas and where its 100 cc bikes are popular, Munjal said.