Several Indian companies, including Maruti Suzuki, Dabur India and Marico, have spoken about the impact of inflation on consumer-spending.
Havells' profit fell to 2.84 billion rupees ($34.91 million) in the third-quarter ended Dec. 31, from 3.06 billion rupees a year earlier.
Revenue from operations rose 12.8% to 41.20 billion rupees, Havells added, while overall margins fell to 20% from 20.7% a year earlier, the company said in a statement.
Havells, which owns brands like Lloyd and Crabtree, said it had increased its advertising and sales promotion expenses by 27% to 1.28 billion rupees.
Lloyd, which makes airconditioners, continues to hold high-cost inventory, Havells said, adding that margins should improve in the fourth quarter.
Losses at its Lloyd segment widened to 600 million rupees from a loss of 420 million rupees year ago, while its switchgears and lighting and fixtures business posted a 12% and 39% drop in profit, respectively.
($1 = 81.3580 Indian rupees)
(Reporting by Anisha Ajith in Bengaluru; Editing by Sohini Goswami)