Rising inflation has forced cash-strapped consumers in rural markets and smaller towns and cities to tighten budgets as they struggled to recover from the economic impact of COVID-19.

Going by Refinitiv IBES data, analysts had expected the company to report a profit of 3.82 billion rupees. The Mumbai-based company continues to feel the after-effects of the pandemic, and internationally, has faced higher input costs and the impact of currency depreciation. Also the worst of raw material cost inflation is behind the company, and the group will return to its normal margin levels.

During a conversation with a business channel, managing director Bharat Puri said, Q3 has been as per expectations. He said, "If we look at nine months, we are growing at 23-24%. Our volumes are extremely healthy." He added, "the only headwind is rural and semi-urban areas remain under strain." Puri expected better rural and semi urban demand.

Revenue from consumer and bazaar segment, which sells craft materials and construction, paint chemicals and adhesives to retail users, grew 6.9%. This segment accounts for 80% of the company's revenue.