BENGALURU (Reuters) -Indian consumer goods maker ITC reported fourth-quarter profit below expectations on Thursday, amid increasing competition from smaller rivals for shelf space which dented demand.
The company reported a profit of 50.20 billion rupees ($603.2 million) in the quarter ended March 31, down 1.3% from last year and also missing analysts’ average expectations of 51.11 billion rupees as per LSEG data.
Consumer goods makers including Hindustan Unilever and ITC have indicated that easing prices of some raw materials has encouraged regional rivals, which also typically offer products at cheaper prices, to return to the fray for market share.
Demand in ITC’s paperboards, paper and packaging business has fallen due to competition with cheaper Chinese products, which was reflected in a 7% drop in revenue.
Revenue from its fast-moving consumer goods segment, which houses its foods and personal care business and excludes its cigarettes unit, rose 7.2%, compared with a 19.4% growth in the corresponding quarter last year.
Overall revenue from operations rose edged up 1.4% to 177.53 billion rupees, compared to a 2.2% growth in the previous quarter.
($1 = 83.2300 Indian rupees)
(Reporting by Ashna Teresa Britto in Bengaluru and Praveen Paramasivam; Editing by Varun H K)
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