BENGALURU, Aug 8 (Reuters) - India's Eicher Motors

, which makes the Royal Enfield line of motorcycles,

reported a bigger-than-expected first-quarter profit on

Thursday, helped by strong sales of higher-margin models such as

the Himalayan 450.

The company's profit rose almost 20% year-on-year to 11.01

billion rupees ($131.2 million) in the April-June quarter,

beating analysts' average estimate of 10.14 billion rupees, as

per LSEG data.

Eicher clocked record-high sales in the previous two fiscal

years due to strong demand from urban consumers, its key

demographic. But demand has begun to peter off due to various

factors, including rising competition and persistently high

inflation.

Still, domestic sales of Royal Enfield's models with an

engine capacity of more than 350cc, such as the Interceptor 650,

jumped 29% in the quarter, according to previously released

monthly data.

These higher-margin motorcycles accounted for roughly 14% of

sales, up from 11.1% last year.

That helped counter the roughly 4% drop in domestic sales of

the company's sub-350cc models, such as the Hunter 350, which

accounted for roughly 85% of overall sales.

Overall revenue from operations, which includes sales of

commercial vehicles such as trucks, rose more than 10% to 43.93

billion rupees, topping analysts' estimate of 42.38 billion

rupees.

Royal Enfields are the market leader among India's premium

motorcycles, but its lead is being eaten into by Triumph, which

has partnered with Bajaj Auto in India, as well as

Harley Davidson ( HOG ), whose local partner is the country's

No.1 two-wheeler company, Hero MotoCorp.

Bajaj Auto also beat profit estimates for the quarter, also

helped by sales of higher-margin vehicles. Hero MotoCorp is due

to report results next week.

($1 = 83.9290 Indian rupees)