May 14 (Reuters) - India's Jubilant FoodWorks

reported increased fourth-quarter profit and sales growth on

Wednesday, as the Domino's Pizza franchisee benefited from

strong online sales due to discounts and free deliveries, as

well as new store additions.

India's fast-food sector is cooling as budget-conscious

customers are cutting back on spending amid high living costs

and slow wage growth, with franchisees relying on discounts to

stay competitive in a crowded market.

Jubilant, which has not hiked prices on average in at least

two years, will be very "scientific" and "rigorous" in adjusting

them, CEO Sameer Khetarpal said in a conference call.

The company had corrected prices for its "Volcano Pizza",

but is still heavily focused on value, he added.

Analysts believe Jubilant's investments in 20-minute

in-house delivery and app orders are reducing its reliance on

third-party platforms such as Zomato and Swiggy, which rivals

are heavily dependent on.

The company reported a profit before tax and exceptional

items of 695.20 million rupees ($8.15 million) for the quarter,

up from 548.61 million rupees a year earlier.

Domino's India posted a 12% sales increase at stores open

for at least a year, up from 0.1% last year, surpassing Sapphire

Foods, even as Pizza Hut offered a "super sale" with a drink and

two sides.

It benefited from discounts on third-party platforms and

waived delivery fees on app orders, with delivery revenue rising

by 27.1%, while dine-in revenue remained flat.

The company opened 52 new Domino's outlets in India during

the quarter, bringing the total to 2,179, boosting its overall

revenue by 33.6% to 21.03 billion rupees.

Expenses surged about 32% year-on-year due to higher prices

of cheese, oil and coffee, and personnel costs, dragging the

core profit margin in the quarter down 131 basis points to 18.5%

from last year.

($1 = 85.2590 Indian rupees)