Hero MotoCorp, Bajaj Q3 profits rise

Sales of motorcycles and scooters -- family vehicles for millions in Asia's third-largest economy -- have stayed strong in recent quarters, partly benefiting from a slowdown in sales of small cars after a series of interest rate increases.

An industry body this month forecast a 13 to 15 percent growth in two-wheeler sales for the fiscal year that ends in March, while it expects car sales to rise at best 2 percent.

"The growth rate will be slightly lower (in the current quarter) compared to the first nine months, but then it should still be in the range of 10 to 12 percent," said Yaresh Kothari, a sector analyst at Angel Broking.

Hero MotoCorp, which was renamed last year after the controlling shareholder, India's Munjal family, bought Japanese partner Honda Motor Co's (7267.T) 26 percent stake, posted a 43 percent jump in quarterly net profit to 6.13 billion rupees in its fiscal third quarter ended December.

"While we expect market demand for two-wheelers to remain stable, a lot will depend on the overall economic and political scenario going forward," Hero's Managing Director Pawan Munjal said in a statement.

Hero, which grew its vehicle sales 19 percent in 2011 to 6.1 million, expects the double-digit percentage growth in sales to continue for the fiscal year starting in April, Munjal said earlier this month.

Bajaj, which sells popular two-wheeler models such as the Pulsar, Avenger and Discover motorcycles, reported third-quarter net profit rose 19 percent to 7.95 billion rupees, while net sales rose 22 percent to 48.4 billion rupees.

Bajaj, the No.1 three-wheeled vehicle maker in the world, launched its first-ever four-wheeled vehicle this month, saying the low-emission and fuel-efficient RE60 would target commercial users in India.

Shares in Hero, valued at about $7.1 billion, closed 2.4 percent up in a strong Mumbai market, while Bajaj shares, valued at $8.3 billion, closed 0.9 percent higher.

(Reporting by Anurag Kotoky and Devidutta Tripathy in NEW DELHI, Henry Foy in MUMBAI; Editing by Aradhana Aravindan)