Godrej Consumer posts slowest revenue growth in over 3 years on soft demand

India’s Godrej Consumer Products reported its slowest total revenue growth in 14 quarters on Wednesday, hurt by beleaguered demand for its products, especially from the country’s hinterlands.

The company’s consolidated total revenue from operations rose 1.7% to 36.60 billion rupees ($440.7 million) for the three months ended Dec. 31.

While urban demand sustains, consumer goods companies like Hindustan Unilever and Marico have been flagging muted rural demand as buyers cut back on spending owing to uneven monsoon and costlier essentials.

Total expenses slipped by 1%, helping the Cinthol soap maker drive a 6.4% rise in net profit at 5.81 billion rupees, surpassing analysts’ estimates.

The company introduced newer products in its ‘home care’ segment to expand offerings at a time when local and cheaper alternatives lure cash-strapped consumers.

It’s mainstay domestic business, which formed 60% of the total revenue, rose 9.7%, backed by the sales of its mosquito repellent, air freshener and detergent brands, Godrej Consumer said.

Shares of the company ended 0.7% lower ahead of the results.