BENGALURU, May 14 (Reuters) - KFC India operator Devyani

International reported on Tuesday an 89% slump in

fourth-quarter profit before a one-time expense, as

inflation-weary consumers cut back on dining out and ordering in

despite discounted prices amid surging costs.

Its consolidated profit before exceptional items and tax

fell to 43.9 million rupees ($525,836.7) for the quarter ended

March 31, compared with a profit of 412.3 million rupees an year

ago.

During the quarter, the company - which operates KFC and

Pizza Hut chains - accrued an exceptional item worth 423.7

million rupees, after its unit acquired 283 KFC restaurants in

Thailand, the company said.

India's quick-service restaurant's have struggled to lure

customers in the face of sticky inflation.

Promotional offers and value-based meals helped Devyani's

revenue from operations rise nearly 39% to 10.47 billion rupees

during the quarter, beating analysts average estimate of 8.79

billion rupees, as per LSEG data.

However, this led to a near 46% surge in its total expenses.

Shares of the company, which were up 0.3% ahead of results,

fell 3.3% after the results. The stock fell 22% in the March

quarter.

Last week, Sapphire Foods India, which also

operates Pizza Hut and KFC chains but has fewer stores than

Devyani, posted its biggest profit drop since listing on slow

demand and piling costs, whereas McDonald's India franchisee

Westlife's profit was nearly wiped out on frail

demand.

($1 = 83.4860 Indian rupees)