With lockdowns extending due to rising death tolls across the world, economies are suffering with millions left jobless. Pakistan is among the countries hit hardest economically and one of the most prominent company in the country, Gul Ahmed, has witnessed a massive dip in profits.
Gul Ahmed Textile Mills Ltd, one of the biggest brands of clothes and exporters of various textile products, has incurred huge losses of Rs. 452 million in the quarter of January to March due to the lockdown in the local and export markets.
It is noteworthy that last year the company made a profit of Rs. 654 million in the quarter of January to March last year, according to the financial results. And these statistics has made the company take the hard decision of laying of hundreds of employees.
Gul Ahmed Textile Limited consider as one of the biggest textile business of Pakistan owing more than 1,000 employees. Due to the financial crisis, the company retrenched 450 employees recently. Owing as the final blow to their financial position was that recently, the company’s export orders were not delivered recently which also hit the earnings of the company besides the expected refund from the government yet to be received by the apparel producers.
The company is witnessing no production activity presently at the factories due to lockdown in line with Covid-19 outbreak.
In the nine-month period of FY20, the company’s profit declined by 77 percent to Rs. 616 million as compared to the previous financial year in which it stood at Rs. 2.7 billion, as a result of the halt in the production cycle and almost no earnings from the local and exports market.
The management of the company is looking for government support and relief to come out from the financial difficulty.