Shares of India’s Hindustan Unilever fell 2.7% early on Monday after the consumer goods giant warned that the recent goods and services tax (GST) reforms had caused a temporary sales hit in September that was likely to extend into October.
The stock is currently trading at 2,486.70 rupees, resulting in a market capitalisation of 5.9 trillion rupees ($66.50 billion), according to Refinitiv.
On Friday, the Mumbai-based firm also said it expects consolidated business growth to be in the flat to low single-digit range for the quarter ending September 30.
India cut taxes in September on a wide range of consumer goods ranging from soaps to air conditioners, to boost domestic demand as the economy faces pressure from steep U.S. tariffs.
“While this measure supports long-term consumption, we have seen a transitory impact in the form of disruption at distributors and retailers across channels to clear existing inventories with old prices,” the company said on Friday.
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