(Reuters) -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.
(Reporting by Vijay Malkar in Bengaluru; Editing by Harikrishnan Nair)
