New Delhi, July 24: Hero Honda Motors registered a 20.14 per cent dip in net profit at Rs 189.84 crore for the first quarter ended June 30 against Rs 237.74 crore in the corresponding period of the previous fiscal.

Analysts said rising interest rates, volatile raw material prices and fierce competition weighed heavy on sales.

Total income (net of excise) of the company increased marginally by 2.90 per cent to Rs 2,486.90 crore in the quarter compared with Rs 2,416.65 crore a year ago, the company informed the Bombay Stock Exchange (BSE).

New Delhi-based Hero Honda, in which the Munjal family and Japan’s Honda Motor Company each hold 26 per cent, sold 802,853 units in the April-June quarter, a drop of 3.6 per cent from a year ago.