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 India's Devyani International reported an 84% slump in its quarterly profit on Friday as the domestic operator of Pizza Hut and KFC restaurants was swamped by higher expenses and tepid currency in key market Nigeria.

Consolidated net profit fell to 117.6 million rupees ($1.42 million) for the first quarter ended June 30, from 738.5 million rupees in the year-ago period, according to an exchange filing.

Devyani said it took a one-off hit of 473.3 million rupees during the reported quarter due to the impact of weak currency in Nigeria, where it operates 38 of its 1,290 stores.

Devyani, the Indian franchisee for Costa Coffee, said its total expenses jumped nearly 25% from a year earlier, as prices of raw materials including cheese and vegetables soared.

Restaurant chains including Domino's Pizza - run by Jubilant FoodWorks - KFC and Pizza Hut launched lower-priced menu items to gain more traction among consumers, although sales were lacklustre with people cutting their discretionary spending.

For Devyani, same-store sales dropped 1% at its KFC business in India, while its Pizza Hut India division posted a steeper 5.3% decline for the quarter.

"(Devyani faces) challenges from a difficult macro environment and depressed consumer spending," Chairman Ravi Kant Jaipuria said in a statement.

Still, revenue from operations surged 20% to 8.47 billion rupees, underpinned by the company's decision to roll out more stores.

Shares of Devyani dropped as much as 2.5% to 188.85 rupees after the earnings.

"The currency hit in Nigeria was a surprise and while Pizza Hut decline was expected, KFC decline is disappointing," said Centrum Broking research analyst Shirish Pardeshi.

Devyani's profit slump chimed with lacklustre performances of rivals Yum Brands franchisee Sapphire Foods India and McDonald's operator Westlife Foodworld, both underscoring the slowdown in consumer spending and demand.

($1 = 82.7850 Indian rupees)