BRITANNIA

Rewrites throughout with comments from post-earnings call

May 8 - India's Tata Consumer Products TACN.NS forecast double-digit revenue growth in fiscal 2027 on Friday, after beating quarterly earnings estimates, as steady demand for staples such as tea and salt offset cost pressures from the Middle East conflict.

Tea prices were largely benign and coffee prices are starting to ease, which should aid margins, the Tata group company said in an earnings call, while any broad-based fuel inflation would likely be passed on through pricing.

The 'Tata Salt' maker expects earnings before interest, taxes, depreciation and amortization (EBITDA) margin to grow by 50-70 basis points for the current fiscal year, a slower pace than fiscal 2026, which saw an expansion of 100 basis points.

After a prolonged urban-led slowdown, demand has started recovering in India, aided by tax cuts introduced last year aimed at boosting spending. But margins are being impacted for Indian consumer goods makers.

The Middle East conflict disrupted shipping in March, hurting some international and export-led businesses, the Tetley tea maker said.

However, it added that supply chains have normalised since April and risks were contained through alternative sourcing and pricing power.

Its growth portfolio, which includes premium health-focused brands such as Organic India and Tata Sampann, posted 33% revenue growth from a year ago.

The company expects it to expand at about 30% in the near term as it diversifies to reduce exposure to volatile commodity prices.

Peers Dabur DABU.NS and Britannia Industries BRIT.NS have turned to price hikes to combat rising commodity prices linked to the Iran war. Higher raw material prices, fuelled by surging crude, are pressuring corporate margins across sectors.

Tata Consumer, which operates a joint venture with Starbucks SBUX.O in India, said fourth-quarter profit grew 21% to 4.19 billion rupees, while revenue climbed 18%, both beating estimates. Quarterly expenses rose about 16%.

(Reporting by Urvi Dugar in Bengaluru; Editing by Shreya Biswas)

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May 7 (Reuters) - Britannia Industries Ltd BRIT.NS:

• Q4 CONSOL TOTAL REVENUE FROM OPERATIONS 47.19 BILLION RUPEES

• Q4 CONSOL NET PROFIT 6.78 BILLION RUPEES; IBES EST. 6.7 BILLION RUPEES

• FINAL DIVIDEND OF 90.50 RUPEES PER SHARE

Further company coverage: BRIT.NS

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March 31 (Reuters) - Britannia Industries Ltd BRIT.NS:

• RE-APPOINTS N. VENKATARAMAN AS EXECUTIVE DIRECTOR AND CFO FOR 4 YEARS FROM JULY 2026

Source text: ID:nBSEvbC3f

Further company coverage: BRIT.NS

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March 13 (Reuters) - Britannia Industries Ltd BRIT.NS:

• REPORTS NO SIGNIFICANT DISRUPTION TO OPERATIONS FROM INDUSTRIAL GAS SUPPLY

• MAINTAINS ADEQUATE LEVELS OF FINISHED GOODS ACROSS SUPPLY CHAIN

• CAN SWITCH BETWEEN MULTIPLE FUEL TYPES AT MANUFACTURING FACILITIES

• TO MONITOR DEVELOPMENTS AND ENSURE CONTINUITY OF OPERATIONS

• TAKEN NOTE OF REPORTS ON POTENTIAL DISRUPTION ON ACCOUNT OF CONFLICT IN MIDDLE EAST

Source text: ID:nNSE9YLj3X

Further company coverage: BRIT.NS

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Updates with analyst commentary in paragraphs 6 and 7, parent results in paragraph 9

By Praveen Paramasivam and Komal Salecha

Feb 12 (Reuters) - Hindustan Unilever HLL.NS reported a 15% decline in quarterly profit on Thursday, pressured by thinner margins as the consumer goods major cut some product prices to counter rising competition, sending shares lower.

The local subsidiary of UK's Unilever ULVR.L, home to Dove and Surf Excel brands, said its profit from continuing operations fell to 25.90 billion rupees ($286.05 million) for the quarter ended December 31.

Shares fell as much as 4.6% after the results.

Total expenses climbed 5%, with EBITDA margins shrinking by 70 basis points from a year earlier to 23.3%, after Hindustan Unilever cut prices in its tea business and home care portfolios, partly to stave off competition.

Hindustan Unilever has grappled with stiff competition in fabric care from startups as well as Ariel detergent maker Procter & Gamble PG.N and India's Godrej Consumer Products GOCP.NS.

Three analysts said Hindustan Unilever's margins missed their estimates. Akshay D'Souza, an independent consumer goods consultant, said the company's focus on distribution-led growth, a slower pace of launches and acquisition spending have squeezed margins.

However, its sales growth improved, rising 4% from a year earlier to 156.14 billion rupees. A 4% increase in sales volume growth is "a bright spot," said Ajay Thakur, research analyst at Anand Rathi Institutional Equities.

Consumer goods makers, including Britannia Industries BRIT.NS and Hindustan Unilever, expect demand to pick up after several subdued quarters, supported by tax cuts and easing inflation that have bolstered urban spending.

Hindustan Unilever expects the fiscal year starting April to be better than the current year. But its parent firm expects 2026 sales growth to be at the lower end of its forecast after a slowdown in the U.S. and Europe.

Hindustan Unilever on Thursday also said it would buy the remaining 49% stake in plant-based food brand Oziva for 8.24 billion rupees.

($1 = 90.5450 Indian rupees)

(Reporting by Komal Salecha in Bengaluru and Praveen Paramasivam in Chennai; Editing by Sonia Cheema)

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** Shares of Britannia Industries BRIT.NS rise 4.2% to 6,116 rupees, their biggest intraday-pct gain since May 2024

** Biscuit maker posts 17% rise in Q3 profit, helped by price hikes and tax cuts; rev up 8.2%

** Morgan Stanley says biscuit prices are still adjusting after the GST tax cut, and the market has not fully stabilised yet

** Nomura expects competitive intensive in the biscuits industry to ease in Q4, in turn improving co's sales growth momentum

** Stock rated "buy" on avg by 33 analysts; median PT 6,650 rupees - data compiled by LSEG

** Stock is largely flat YTD

(Reporting by Aleef Jahan in Bengaluru)

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** Britannia Industries' BRIT.NS shares rise 0.6% to 5,870.50 rupees so far ahead of Q3 results; Nifty 50 .NSEI up 0.34%

** Analysts, on average, expect biscuit maker's quarterly profit to jump 14.7% y/y, revenue to rise 12% y/y -- data compiled by LSEG

** BRIT's margins may improve as companies channel input-cost softness into gross profits, Nomura says

** 33 analysts, on avg, rate the stock "buy"; median PT 6,650 rupees - data compiled by LSEG

** YTD, BRIT down around 3% vs .NSEI's 0.7% decline; stock gained 26.6% in 2025

($1 = 90.7150 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru)

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Jan 1 (Reuters) - Britannia Industries Ltd BRIT.NS:

• GETS TAX DEMANDED OF 1.09 BILLION RUPEES

Source text: ID:nBSE5TQr4F

Further company coverage: BRIT.NS

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Nov 11 (Reuters) - India's Britannia Industries' BRIT.NS shares tumbled nearly 6% in early trade on Tuesday after its long-time managing director Varun Berry quit after more than a decade at the helm.

(Reporting by Komal Salecha in Bengaluru; Editing by Sonia Cheema)

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** Indian biscuit-maker Britannia Industries BRIT.NS rises 3.5% to 6,096.5 rupees

** Britannia's Q2 profit rises 23% y/y and net profit margins improve to 13.5% from 11.4% a year ago, benefitting from price hikes

** Co taps paints manufacturer Birla Opus' former chief Rakshit Hargrave as CEO

** BRIT's former CEO Rajneet Kohli stepped down in March

** New CEO Hargrave played a critical role in scaling the Birla paints business amid tough competition, Jefferies says

** On the day, Grasim Industries GRAS.NS, which includes Birla Opus, falls 5%

** YTD, BRIT up ~28%

(Reporting by Ananta Agarwal in Bengaluru)

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** Analysts at Nomura and Jefferies say Colgate COLG.NS, Britannia Industries BRIT.NS and Nestle India NEST.NS will be the key beneficiaries of tax cuts on everyday items

** Government slashed rates to 5% on a wide range of everyday items including personal care products, household goods and packaged foods.

** Colgate, up 3.6%, was the top gainer on Nifty FMCG index .NIFTYFMCG which rose 0.7%

** Britannia, Dabur and Nestle were also among the top gainers on the index, gaining 3%, 2.2% and 1.7%, respectively

** Nomura expects 100% of COLG's portfolio to benefit from tax cuts, while Jefferies estimates that number to be 95%

** 85% of Britannia's portfolio to benefit - Nomura and Jefferies

** Analysts flag that around 70% of Nestle's and 50%-60% of Dabur's portfolio to benefit

** Median PT for Colgate is 2472 rupees, Britannia's at 5900 rupees; Nestle and Dabur at 1200 and 545 rupees, respectively - data complied by LSEG

(Reporting by Nishit Navin in Bengaluru)

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** Indian biscuit maker Britannia Industries BRIT.NS down ~2% to 5,523 rupees following Q1 results

** 'Bourbon' biscuits maker misses Q1 profit estimates as cost inflation in key commodities and high competition crimp margins

** Macquarie says Britannia's comments, pointing to a heightened competitive landscape across categories, are concerning

** Adds, EBITDA, which was flat y/y came below its estimates

** BRIT rated 'hold' on average by 34 analysts; media PT at 5,824, implying a 5.4% upside to current price - as per data compiled by LSEG

** YTD, Britannia shares up ~16%

(Reporting by Ananta Agarwal in Bengaluru)

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Rewrites throughout with more earnings commentary, background and details

Aug 5 (Reuters) - Britannia Industries BRIT.NS posted first-quarter profit below estimates on Tuesday, but the Indian biscuit maker said urban consumption — dull for a few quarters — is picking up.

The seller of 'Marie Gold' and 'Bourbon' biscuits joins other domestic consumer goods makers such as Hindustan Unilever HLL.NS and ITC ITC.NS in forecasting early signs of a recovery in urban demand, aided by easing local inflation.

India's annual retail inflation slowed every month in the quarter, easing to a six-year low in June at 2.1%. That helped spur a "marginal uptick in consumption across both urban and rural markets," said Varun Berry, managing director and chief executive.

Britannia's quarterly sales grew 9.8% to 45.35 billion rupees ($516.5 million). The firm had previously flagged rise in popular demand for packaged food and confectionery items such as croissants, wafers and flavoured shakes - usually more likely to be bought on impulse.

But total spends rose 10.4%, led by a 15% jump in raw material costs. Britannia has been hiking prices to partly offset the higher costs of raw materials such as cocoa, flour and palm oil.

Profits in the reported quarter came in at 5.21 billion rupees, up 3% on-year, but below analysts' average estimate of 5.7 billion rupees, according to data compiled by LSEG.

($1 = 87.8100 Indian rupees)

(Reporting by Ananta Agarwal and Hritam Mukherjee in Bengaluru; Editing by Janane Venkatraman and Sahal Muhammed)

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** Britannia Industries BRIT.NS climb 0.8%; consumer goods and benchmark indexes down over 1%

** Biscuit maker's Q4 profit rises due to price hikes, which Nomura pegs at 6%

** Brokerages say 9% rev growth of 9% largely met estimates, while profit growth of 4% beat view

** Most analysts hold ratings; avg rating is equivalent to "buy", similar to most on 15-member Nifty FMCG .NIFTYFMCG

** Stock has gained 15% YTD, second-highest on index that is down 2.4% this year

(Reporting by Nandan Mandayam in Bengaluru)

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May 8 (Reuters) - Britannia Industries Ltd BRIT.NS:

• Q4 CONSOL NET PROFIT 5.6 BILLION RUPEES; IBES EST. 5.18 BILLION RUPEES

• Q4 CONSOL TOTAL REVENUE FROM OPERATIONS 44.32 BILLION RUPEES; IBES EST. 43.97 BILLION RUPEES

• - RECOMMENDED FINAL DIVIDEND OF 75 RUPEES/SHARE

Further company coverage: BRIT.NS

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May 1 (Reuters) - Britannia Industries Ltd BRIT.NS:

• RECEIVES ORDER FROM ADDITIONAL COMMISSIONER OF CGST & CX

• ORDER DEMANDS TAX OF 254.2 MILLION RUPEES

Source text: ID:nBSE88w2lW

Further company coverage: BRIT.NS

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March 24 (Reuters) - Britannia Industries Ltd BRIT.NS:

• BRITANNIA INDUSTRIES LTD - JHAGADIA PLANT OPERATIONS PARTIALLY AFFECTED BY STRIKE

• BRITANNIA INDUSTRIES LTD - IN DISCUSSIONS WITH WORKERS TO RESOLVE STRIKE

• BRITANNIA INDUSTRIES LTD - ASSESSING IMPACT OF STRIKE, MANAGING DEMAND THROUGH AVAILABLE RESOURCES

Source text: ID:nBSE6DqYSk

Further company coverage: BRIT.NS

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Adds details, background throughout

March 6 (Reuters) - Indian biscuit maker Britannia Industries BRIT.NS said on Thursday that its Chief Executive Officer Rajneet Singh Kohli has resigned after serving two-and-a-half years in the role.

Britannia did not name Kohli's successor, but said he will be relieved from the role on March 14, as per his request.

Kohli, who joined as Britannia's CEO in September 2022, did not disclose the exact reason for stepping down, but said in his resignation letter that he will "pursue an external opportunity".

Before joining Britannia, the 50-year-old had held leadership roles at major firms like Domino's India, run by Jubilant Foodworks JUBI.NS, Asian Paints ASPN.NS and U.S. beverage giant Coca-Cola Co KO.N.

Under Kohli's leadership, the biscuit maker's shares rose nearly 25% as it focused on product diversification, entering the healthy food segment, and expanding manufacturing plants in the eastern Indian states of Odisha and Bihar.

Britannia's shares erased early-session gains after the news. They were last trading 0.6% lower as of 3:20 p.m. IST.

The company has in the recent months benefited from price hikes to counter rising input costs, helping it beat its latest third-quarter profit estimates.

(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala and Sonia Cheema)

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Feb 21 (Reuters) - Bharat Petroleum Corporation Ltd BPCL.NS:

• NSE: BPCL AND BRITANNIA INDUSTRIES BEING EXCLUDED FROM NIFTY 50

• NSE: JIO FINANCIAL SERVICES AND ZOMATO BEING INCLUDED IN NIFTY 50

• NSE: CHANGES IN NIFTY 50 STOCKS SHALL BECOME EFFECTIVE FROM MARCH 28

Source text: [ID:]

Further company coverage: BPCL.NS

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** Shares of Indian biscuit maker Britannia Industries BRIT.NS up as much as 2.2% on Q3 results to 5065 rupees

** Co reports 6% volume growth y/y in despite "ongoing subdued demand" and "increased competitive pressures"

** Net profit growth of 4.8% aided by lower employee costs and advertising spends, analysts say

** Gross margin contraction of more than 500bps higher than expected due to inflation in key commodities - JPMorgan

** Analysts see green shoots from trade promotions and distribution network expansion aiding volume growth amid ongoing margin pressure

** Stock rated "Hold" on avg by 33 analysts - LSEG

** Avg PT of 5421.88 rupees provides a 7.7% upside to current stock price

(Reporting by Ananta Agarwal in Bengaluru)

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** Shares of Britannia Industries BRIT.NS gain 0.7% ahead of third-quarter results later in the day

** Analysts on average expect co to post a 6.4% Y/Y drop in Q3 profit to 5.21 billion rupees ($59.51 million), as per data compiled by LSEG

** BRIT increased prices by 4% to 5% in Q3 across its portfolio to boost revenue and offset rising commodity prices

** However, by hiking prices, co risked losing market share

** Rival Nestle India NEST.NS fell short of Q3 profit estimate due to slowdown in consumer spending, while Hindustan Unilever HLL.NS anticipates near-term margins to be at the lower end of its forecast range of 23%-24%

** BRIT rated "hold" on avg vs a "buy" rating on rivals NEST and HLL - LSEG-compiled data

** BRIT rises 4.2% so far in 2025 after ~11% fall in 2024

($1 = 87.5475 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru)

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Adds consumer, trade body and company reaction; updates shares

By Praveen Paramasivam and Sai Ishwarbharath B

CHENNAI/BENGALURU, Feb 1 (Reuters) - India's plans to cut personal income tax rates will put more disposable income in the hands of the people and eventually boost consumption in the world's fifth-largest economy, top executives said on Saturday.

The comments came after the government in its annual budget said that people earning up to 1.28 million rupees ($14,800) per year will not have to pay any taxes, raising its threshold from 700,000 rupees. It also cut tax rates for people earning above the new threshold.

Private consumption accounts for about 60% of India's gross domestic product.

Consumption in India has been under stress in the last few quarters as shoppers tightened their purse strings amid stubborn inflation and modest wage growth.

"Tax reforms benefiting the middle class will increase disposable income, further fuelling demand across essential and aspirational categories," Godrej Consumer Products' GOCP.NS CFO Aasif Malbari said.

The news boosted the shares of consumer goods .NIFTYFMCG, autos .NIFTYAUTO and realty .NIFTYREAL firms by 4.1%, 2.1% and 3%, respectively. It also pushed the shares of food delivery firms Zomato ZOMT.NS and Swiggy SWIG.NS 7.8% and 8.7% higher, respectively.

The government's plan is estimated to help around 25-30 million personal tax payers save about 100,000 rupees annually, according to Kamal Bali, managing director of Volvo Group India.

"It will boost discretionary capital spends like buying a vehicle. (People) will have better repaying capacity for EMIs," Bali told Reuters.

Others echoed the sentiment.

"The tax cut is going to be a helpful factor in accelerating demand for various kinds of consumer products," RC Bhargava, chairman of Maruti Suzuki India MRTI.NS, India's top carmaker, told TV channel ET Now.

The Federation of Automobile Dealers Associations (FADA), a trade body, expects the government's plan to make car upgrades affordable to more middle-class families, leading to higher demand for SUVs, sedans, and premium two-wheelers.

Some consumers welcomed the news.

"I would have one less stressful obligation since I would no longer have to pay taxes," Chennai-based software engineer S. Surya said, adding he planned to use the money he saved "on higher-quality essentials and restaurant visits".

Some others were less thrilled.

"They haven't reduced goods and services tax or petrol prices," Pranav Charan, another engineer, lamented.

($1 = 86.5360 Indian rupees)

(Reporting by Praveen Paramasivam, Sai Ishwarbharath B and Nishit Navin; Editing by Dhanya Skariachan and Sonia Cheema)

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Jan 23 (Reuters) - Britannia Industries Ltd BRIT.NS:

• GETS TAX DEMAND OF TOTAL AMOUNT 43.3 MILLION RUPEES

Source text: ID:nBSE8rYbgc

Further company coverage: BRIT.NS

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Jan 16 (Reuters) - Britannia Industries Ltd BRIT.NS:

• GOT TOTAL TAX DEMAND ORDER FOR 11.6 MILLION RUPEES

Source text: ID:nNSE2ymlzk

Further company coverage: BRIT.NS

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** Shares of Britannia Industries Ltd BRIT.NS down 13.8% in November, set for their biggest monthly drop since June 2006

** Stock currently up 0.2% at 4,934.95 rupees

** BRIT among top 5 biggest monthly pct losers on blue-chip Nifty 50 index as well as FMCG stocks .NIFTYFMCG that are down 1.2% and 2.5%

** BRIT reported smaller-than-expected Q2 profit in mid-Nov due to poor demand from inflation-wary urban customers, sending its shares down by more than 12% in two sessions

** Downbeat results also led stock to its worst week in 24 years; the stock was up by just 0.35% on the day before the results

** Avg rating on stock has fallen to "hold" from "buy" following post-results downgrades - LSEG

** Stock has 13 "hold" ratings, its most in at least two years

** YTD, BRIT down ~8%, among worst-performing stocks on Nifty 50 and Nifty FMCG index that are up 11% and ~2%, respectively

(Reporting by Nandan Mandayam in Bengaluru)

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** Shares of consumer goods maker Britannia Industries BRIT.NS fall 1.9% to 4,798.5 rupees, their lowest level since early-May

** BRIT top loser on Nifty FMCG index .NIFTYFMCG, which is down 0.5%

** Co on Tuesday said the Food Safety and Standards Authority of India (FSSAI) issued a notice over the use of a preservative in one of the batches of its product

** Co did not disclose which product was flagged by FSSAI, but says it expects no material impact on financials or operations

** More than 448,000 shares change hands, 1.1x its 30-day avg

** Avg rating of 33 analysts is a "hold"; median PT at 5,435 rupees - LSEG data

** BRIT is down 16% this month, on track for its worst month since June 2006

(Reporting by Ashna Teresa Britto in Bengaluru)

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** Britannia Industries BRIT.NS falls 2.5% to 4,920 rupees, lowest in six months

** Stock down 14% this week, set for worst week since January 2000

** BRIT top loser and worst performing stock this week on the benchmark Nifty 50 index .NSEI, which is down 0.04%

** Indian markets are closed on Friday for a holiday

** Consumer goods major posted smaller-than-expected Q2 profit and rev on Monday amid slump in urban consumption

** At least 24 analysts slash PT post results; four downgrade rating

** BRIT rated "hold" on avg now vs "buy" before results; median PT now at 5,450 rupees vs 5,800 rupees earlier - LSEG

** Stock down ~8% YTD

(Reporting by Ashna Teresa Britto in Bengaluru)

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By Praveen Paramasivam, Shivangi Acharya

CHENNAI/NEW DELHI, Nov 13 - India's city dwellers are cutting spending on everything from cookies to fast food as persistently high inflation squeezes middle class budgets, threatening the country's brisk economic growth.

Slowing urban spending over the past three to four months has not only hurt the earnings of largest consumer goods firms, it has raised questions about the structural nature of India's long-term economic success.

Since the end of the pandemic, India's economic growth has been driven in large part by urban consumption, however, that now seems to be changing.

"There is a top end – the people with money are spending like that is going out of style," Nestle India Chairman Suresh Narayanan said.

"There used to be a middle segment, which used to be the segment that most of us fast moving consumer goods (FMCG) firms used to operate in, which is the middle class of the country, that seems to be shrinking."

Nestle India, which makes Kit Kats and other well-known goods, reported its first quarterly revenue drop since the COVID-hit June quarter in 2020.

While there is no officially defined income bracket for Indian middle class households, they are broadly estimated to account for a third of India's 1.4 billion people.

They are considered a key demographic both economically and politically, with middle class frustration seen as a significant factor behind Prime Minister Narendra Modi's weaker election performance this year.

Asia's third-largest economy is expected to expand 7.2% in the financial year ending March 2025, the fastest among its major peers.

Belying those rosy projections, however, are signs of a sharp slowdown in the household sector.

Indian urban consumption hit a two-year low this month, according to an index published by Citibank that captures indicators such as airline bookings, fuel sales and wages.

"While some of the fall could be temporary, the key macro drivers remain unfavourable," Citi's chief India economist Samiran Chakraborty said.

Growth in inflation-adjusted wage costs for listed Indian firms - a proxy for earnings of urban Indians - has remained below 2% for all the three quarters of 2024, well below the 10-year average of 4.4%, data from Citi showed.

Chakraborty cites this as a key factor impacting urban consumption, along with declining savings and tighter rules for personal loans.

Headline inflation has averaged 5% over the past 12 months, but food inflation has held above 8% as weather shocks elevated prices of vegetables, cereals and other essential foods. In October, retail inflation hit a 14-month high of 6.2% while food prices jumped to 10.9%.

Anecdotal data suggests retail sales rose close to 15% year-on-year during the 2024 festive season, which runs from August to November, Nomura said in a note last week, about half last year's pace.

"During this festival season, we have not spent at all," said Rajwanti Dahiya, 60, who survives on her husband's monthly pension of 30,000 Indian rupees ($356.76).

"Savings are low, barely there."

A 'SHRINKING' MIDDLE

India's central bank expects 7.2% GDP growth for the fiscal year ending March 2025 on the back of improved rural demand and a strong services sector.

Higher government investment could also support demand, said Rahul Bajoria, head of India and ASEAN economic research at Bank of America.

"If government spending kicks in, that probably does have some multiplier effects on private consumption spending as well," said Bajoria, who expects GDP growth at 6.8% in the current financial year.

Some are less optimistic with Citi and IDFC First Bank economists expecting GDP growth in the July-September quarter to miss the central bank's projected 7%, weighed by slower urban consumption.

That pessimism has hit consumer stocks with the Nifty FMCG index .NIFTYFMCG declining 13% since Oct. 1, compared with a 7.4% drop in the benchmark Nifty 50 .NSEI.

Of the FMCG index's 15 constituent firms, only one reported a pickup in sales volume growth in the September quarter.

Consumers in large cities are swapping branded items from hair oil to tea for cheaper unbranded alternatives, reflected in the first sales volume decline in 11 quarters for the foods and refreshment group at Hindustan Unilever.

"We see the growth in big city standing down, although in smaller cities and in rural the growth continues to be good," Hindustan Unilever chief executive Rohit Jawa said last month, after reporting lower than expected earnings.

Consumers are also cutting back on dining out.

Fast-food chains such as McDonald's, Burger King, Pizza Hut and KFC posted same-store sales declines, earnings showed.

While people are still coming, they are choosing cheaper meals, Rajeev Varman, CEO at Burger King operator Restaurant Brands Asia RESR.NS said after posting a 3% drop in quarterly same-store sales.

"We prefer budget-friendly stores that give good deals and discounts to manage our monthly expenditure," said 37-year old Avinash Crasto, a Mumbai marketing and sales executive who has a family of four and identifies as middle class.

($1 = 84.0640 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Shivangi Acharya in New Delhi; Editing by Sam Holmes)

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Updates share levels, adds analyst comments

** Britannia Industries BRIT.NS slides 6% to 5,108.9 rupees, the biggest one-day pct fall since March 8, 2022

** Stock top loser on Nifty 50 index .NSEI, which is down 0.92%

** Biscuit maker posts smaller-than-expected Q2 profit, hurt by weaker demand for consumer goods, particularly in urban areas

** Co hurt by steep rise in prices of wheat, palm oil, and cocoa- J.P. Morgan

** Volumes impacted by tepid demand scenario given severe food inflation - Nomura

** Q2 rev up 5% to 46.68 bln rupees ($553 mln), but below market estimates of 47.39 bln rupees - LSEG data

** Stock rated "buy" on avg; median PT is 5,800 rupees

** Day's drop negated yearly gain, stock now down 5% YTD

($1 = 84.3930 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru)

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Adds revenue, background in paragraphs 4-8

Nov 11 (Reuters) - Indian biscuit maker Britannia Industries BRIT.NS posted a smaller-than-expected second-quarter profit on Monday, hurt by weaker demand for consumer goods, particularly in urban areas amid high inflation.

The company, which sells Jim Jam and NutriChoice biscuits, reported a nearly 10% decline in consolidated net profit to 5.31 billion rupees ($62.95 million) for the three months ended Sept. 30, missing estimates.

Analysts, on average, had expected 6.22 billion rupees, according to estimates compiled by LSEG.

Urban consumers in the world's most populous country have been cutting back on spending due to rising prices of essentials, including food, squeezing the bottom lines of major packaged goods makers.

There was "tepid consumer demand" in most packaged consumer goods categories and "severe commodity inflation," Managing Director Varun Berry said, echoing comments made by many of the firm's counterparts, including Nestle India NEST.NS.

The company's earnings are in line with the downbeat results posted by its peers, such as Dove soap maker Hindustan Unilever HLL.NS, Maggi-parent Nestle India, and tobacco major ITC ITC.NS, which were hurt by factors including weak urban demand.

Britannia's revenue rose 5% to 46.68 billion rupees, but slowed from a 6% increase in the previous quarter and missed market expectations of 47.39 billion rupees, according to estimates compiled by LSEG.

The company's total expenses rose by 8% during the quarter, hurt by higher prices of ingredients such as wheat and cocoa.

($1 = 84.3580 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru and Praveen Paramasivam in Chennai; Editing by Abinaya Vijayaraghavan)

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