Indian consumer stocks brace on strong Q3 profit growth, according to Investing.com

Investing.com – Shares Consumers will stop Ltd (NS: ) rose on Wednesday, as the company reported a sharp rise in quarterly profit after two consecutive quarters of losses.

The department store chain on Tuesday reported a consolidated net profit of 522.3 million rupees ($6.03 million) for the third quarter ended December 31, up nearly 41% from 368.5 million rupees in the same period last year.

Shares of the company jumped 10% to Rs 688.70 on Wednesday.

The strong performance was driven by increased demand for premium products such as watches and perfumes during the Indian festive period from October to December – a critical period for retailers.

Revenue from operations grew 11% to 13.79 billion rupees, with premium categories contributing 64% to total revenue, up 9% year-on-year.

Despite broader economic uncertainty, the company’s focus on premiumization appears to be paying off as consumers continue to spend on luxury goods. This strategy, combined with a boost from the holiday season, allowed consumers to recover strongly in the third quarter, boding well for future growth.