Feb 6 (Reuters) - Sapphire Foods India, which

operates Pizza Hut and KFC restaurants in the country, reported

a better-than-expected quarterly profit on Thursday, as its

cheaper food items helped boost demand from budget-conscious

consumers.

The restaurant operator posted a profit of 119.8 million

rupees ($1.37 million) for the third quarter ended December 31,

up from a profit of 101.4 million rupees a year earlier.

Analysts, on average, had expected a profit of 116.8 million

rupees, according to data compiled by LSEG.

($1 = 87.5750 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by

Mrigank Dhaniwala)