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Indian two-wheeler maker TVS Motor Company reported a better-than-expected first-quarter profit on Tuesday, led by firm demand for its two-wheelers and strong margins.

The company, which makes the Jupiter brand of scooters and the Apache line of motorcycles, said its profit rose 23.5% to 5.77 billion rupees ($68.77 million) in the quarter ended June 30 from a year earlier.

Analysts had expected 5.68 billion rupees, according to LSEG data.

TVS Motor's earnings before interest, taxes, depreciation and amortization margin rose to 11.5% from 10.6% a year ago, settling between brokerage Motilal Oswal's estimate of 11.7% and Prabhudas Lilladher's 11.4%.

This came largely on the back of strong two-wheeler demand, both domestic and international, as well as slowing growth in expenses.

Total two-wheeler sales in the country rose 20.4% in the June quarter from the year earlier, with TVS' sales jumping 14.1% to more than a million units in the quarter.

Analysts said a pick-up in sales for premium motorcycles like the 'Apache' series, the ramp-up of electric vehicle volumes and exports recovery have helped TVS.

Quarterly exports for the company, which makes the iQube series of EVs, rose 11.5%. Exports make up nearly a fourth of the company's overall revenue, according to its latest annual report.

TVS Motor's June quarter expenses rose 14.5% - this was its slowest rise in three quarters and helped push up margins.

Revenue from operations rose a less-than-expected 16% to 83.76 billion rupees.

Rival Bajaj Auto reported a 20% rise in its quarterly profit as exports recovered. Hero MotoCorp is yet to report quarterly results.

Shares of TVS Motor pared the day's losses after the results, trading 0.9% lower.

($1 = 83.9060 Indian rupees)