Gul Ahmed Posts Rs. 452 Million in Losses & Fires Hundreds of Employees

Gul Ahmed Textile Mills Ltd, one of the renowned 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.

As against the huge losses it recorded in recent months, the company made a profit of Rs. 654 million in the quarter of January to March last year, according to the financial results. However, the prevailing situation hit the businesses of the company, which ultimately pushed it to layoff its employees recently.


The company is witnessing no production activity presently at the factories due to lockdown in line with Covid-19 outbreak whereas its financial capacity has also weakened substantially in the wake of stagnant cash flows.

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 which crippled its financial position ultimately.

As a result of the cease of the production cycle and almost no earnings from the local and exports market, the company could not sustain its profitability that it retained in the first half of the financial year 2019-20.


Gul Ahmed is Splitting Off Its Local Business in Pakistan

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.

Due to the financial crunch, the company retrenched 450 employees recently.

The company is not likely to witness a respite in the near future as the economic slowdown is prevalent in its targeted local and export markets.

Gul Ahmed Textile Limited is one of the leading exporters of the company with more than half of the revenue is driven by foreign markets. The company is employing over 1,000 workers.

The management of the company is looking for government support and relief to come out from the financial quagmire.

  • They will eventually fire employees when their quality is very low as I was a loyal customer of Gul Ahmed Kurta’s but recently I switched to other brands due to their very poor quality of fabric and they were being sold at huge prices for example:
    Their normal kurta will cost you around 3000 to 4000 and I guarantee you that it will fade in single wash or you will see bubbles on new kurta’s when you wear seat belt of your car..

  • Government closed all business by Order.
    How can any one I mean any company pay salaries without earning…..

    *Government Should Pay Salaries To All Employees* . Please treat it as National Crises where Government (Tax collector) Support is needed.

  • Sab se mehngi brand hain aap log,kam az kam in halaat main hi Kuch sawab kama lete aur price kam rakhte to kyon koi na leta.Na hi loss main jatay.

  • I doubt Gul Ahmed would do something so shallow. Very sad if they have taken this step! Employees are the backbone of any business. They helped bring you here and this is how you help them in their hour of need! Selfish! What will you do when things restart down the line – how will the gap of these 450 people be filled?

  • Instead of shutting down few of the manyyy shops; they chose to fire hundreds of their workers. WOW!!!!

  • Hope the loss amount of Gul Ahmed Tex mills Ltd is not more then their utility bills if they stop those utility bills payment and not fire single employees & pay salarys and then ask relief from Govt then it is little bit justify.

  • Gulahmed quality has gone down too and they had a low standard now people donot prefer them too and they should go down because there stuff was bad quality and too much expensive as compared to other brands

  • This have a very poor quality fabric and colors also fades very early.
    Poor quality and poor management style company.

  • What about their profirs in previous years since the of this business inception, specially after their 70% off regime started about ten years ago. This is very smart business which uses discriminating pricing and cannot incurr any loss. They sell their products across all strata of socity. Now they should think about the society the operate in.

  • Such a shame!
    What about the revenue generated every single day worth Rs.15-16+ millions!
    Shame on GulAhmed for earning multi billions and trillions with the help of these employees for decades and firing them in such difficult times! On top of that asking the government for relief! Konsa relief! Tum logo ki luxuries kay liye relief! Baat ayse kartay hain jese falahi idara Chala rahay thy!

  • Inki lawn bilkol aisi ho gai hai jese tissue paper, (see through type kapry) pehenna aur na pehenna barabar hai,
    new collection tou bohat hi ghatiya ayi hai is dafa, business phelaty jao aur quality giraty jao.

  • Ye sb sindh govt. Ko socha chahye lockdown me srf gul Ahmed e nahi or b bht c choti bari companies hn lock down ki waja se loss hogaya hy koi pochny wala nahi logo ko jobless krdia hy shops b limited open krny ka bola hy baki shops kia krngy kahan jayngy. Sindh govt. Socho logo ky bary me future ky bary m

  • Instead of adopting retrenchment they could have gone for the loans that are being offered by the SBP on minimum interest rate with maximum payback period.

  • Y only they revealed losses they should reveal profit too … if they want they can even go for better strategy rather firing their employees but they wont even share a single rupee of their surplus money to support their own employees…..

  • Govt say benefits lainay kay liye employees ko nikal rahay hain takay Govt under pressure aaye.
    Pehlay to kabhi inhoun nay profit/loss statement jari nahi kiya ub kiyoun kar rahay hain.
    Lockdown to 22 March say announce huwa jubkay yi log January to March kay period ki bath kar rahay hain. Matlab sara loss 22 March say 31 March kay doran huwa.
    Baiwaqoof bana rahay hain sub ko

  • The owners, stake holders, share holders, seths, its apalling to read the star of Corporate Pakistan which prospered on the subsidies, Governmental support, bi-lateral treaties from reciprocal Governments/countries, and the naive, innocent workers, which work under contract labor from Conractors made the owners immunity from every things. This is Pakistan which made you Gul Ahmed. That provide Gul Ahmed with policies, subsidies, level playing field, financial subsidies, and poor naive customer which accepted all your junk. Do take it seriously. Very seriously. This closure will have consequences of hunger, un-employment for the poor masses willing work. Do change your mind. Don’t act smart. Allah knows your heart and mind.

  • Urge my comments blocked. Please consider. In the interest of fair journalism, and global journalism treaties.

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