Nestle India described a bigger-than-expected growth in the third-quarter profit on Wednesday, advancing from the price increases and reverberation in demand for its chocolates and packaged foods in rural areas. The Maggi noodles manufacturer’s profit rose 8.3% to Rs 668 crore in the quarter that ended September 30.

Analysts, on average, expected a profit of Rs 657 crore, according to the IBES data from Refinitiv. The Revenue from operations ascended 18.3% to Rs 4,591 crore as sales of its chocolates, Maggi noodles, Sunrise and Nescafe brands of coffee rose, helped by the robust advertising spend.

The remaining impact of COVID-19 lockdowns and higher cost of living had enforced Indians in rural pockets to leash in their spending, affecting the bottom line for the makers of the consumer parcelled goods for nearly a year.

However, analysts declare that certain categories, including noodles and biscuits, defied the trend as people contemplate such items as small treats during the economic recessions, adding to Nestlé’s resilient urban sales impetus. The easing of the raw material prices, including oil, will likely help drive incomes further for Indian consumer goods manufacturers, whose margins have been stressed by the Russia-Ukraine war-led increase in commodity prices.

“We are witnessing primary signs of steadiness in prices of a few commodities such as the edible oils and packaging materials,” Nestle mentioned in its statement.

The company’s shares rose 1.1% to Rs 19,601 in the morning trading as the KitKat chocolate maker also proclaimed an interim dividend of Rs 120 per share.