BENGALURU/CHENNAI, Oct 19 (Reuters) – India’s ITC (ITC.NS) reported a smaller-than-expected rise in its second-quarter revenue on Thursday, as the patron items main grappled with stiff competitors from smaller rivals and better costs of some commodities.

Smaller operators took benefit of a drop in costs of some uncooked supplies used within the client items sector together with milk, barley and tea, to raised compete with deeper-pocketed giants reminiscent of ITC and Hindustan Unilever (HLL.NS).

“When raw material prices are falling, it becomes a level playing field for both unorganised and organised competition,” stated Shirish Pardeshi, analysis analyst at Centrum Broking.

ITC, residence to family manufacturers reminiscent of Aashirvaad, Bingo and Yippie, stated its biscuits, snacks, noodles and soaps companies confronted growing competitors, together with from regional gamers.

Dove-soapmaker Hindustan Unilever stated earlier within the day it misplaced some market share in its mass section – comprising lower-priced merchandise – resulting from competitors.

However, costs of sure commodities reminiscent of wheat and sugar are nonetheless excessive, which pushed up ITC’s complete bills 3% to 120.87 billion rupees for the three months ended Sept. 30.

The tobacco-to-hotels conglomerate’s revenue nonetheless rose 10% to 49.27 billion rupees ($592.81 million), however missed analysts’ common estimate of 49.54 billion rupees, in line with knowledge from LSEG.

Revenue from operations rose 3% to 177.05 billion rupees, helped by a ten% surge in its cigarettes enterprise.

ITC’s shares, which had slipped almost 2% within the September quarter, closed down 0.3% forward of outcomes.

Other client items majors Nestle India (NEST.NS) and Hindustan Unilever eased past quarterly earnings estimates earlier on Thursday, as metropolis dwellers spent extra on reasonably priced pick-me-ups like cookies and low.

($1 = 83.1121 Indian rupees)

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