PACRA Maintains the Rating of TPL Trakker Limited | Sukuk

TPL Trakker Limited (Hereinafter referred to as ‘the Company’ or ‘TPL Trakker’) is a prominent provider of GPS, GSM, and satellite-based asset tracking and information solutions. Its strong industry standing is reflected in the assigned rating, underpinned by a diversified product portfolio and robust technological infrastructure. The Company capitalizes on its expertise in digital mapping and IoT integration to target high-growth market segments through innovative offerings and strategic alliances by prioritizing advanced analytics and steadily expanding its footprint in the IoT space. The Company fosters sustainable growth and further solidifies its competitive edge in an ever-evolving digital landscape. The tracking industry in Pakistan is rapidly evolving, driven by advancements in IoT and telematics. A significant portion of demand in the tracking services industry comes from the automobile sector, with vehicle tracking being the most common application. Pakistan’s automobile sector has shown an improvement of ~43% growth on YOY basis in FY25, driven by improved economic conditions and consumer sentiments. The Company has diversified its revenue streams across a broad spectrum of smart solutions, including fuel management systems, energy optimization, cold chain monitoring, water level tracking, fleet management, AI-driven vehicle video surveillance, precision agriculture, and automated fuel terminals. During 9MFY25, the Company reported decrease in topline with PKR ~1.48bln (FY24: PKR ~2.54bln), the reduction is primarily attributable to the completion of the Company’s flagship project with Safe Transport Environment (STE) . Company’s margins also saw a dilution at all levels for 9MFY25. The capital structure remains leveraged, with a mix of short-term and long-term borrowings.
The ratings are dependent upon the Sukuk's tiered security structure and a pre-default mechanism, including a facility payment and reserve account holding one installment.

About the Entity
TPL Trakker Limited is a publicly listed Company that is majorly (64.32%) owned by TPL Corp Limited. The Company is a telematics solution provider and the core business mainly comprises vehicle tracking, fleet management, Internet of Things (IoT), and Digital mapping services. The BoD of the Company comprises eight members, headed by the Chairperson Mr. Jameel Yusuf. Mr. Amjad Waqar is the CEO of the Company.

About the Instrument
TPL Trakker Limited has issued a secured, OTC-listed, and privately placed Sukuk ("Sukuk") of the amount PKR 1.25bln in March 2021. The Sukuk carried a profit rate of 3MK+300bps with a tenor of five (5) years. The Sukuk's capital structure includes a Facility Payment Account (FPA) and a Facility Reserve Account (FSRA), maintained with the account bank. The FPA is built by monthly depositing of 1/3rd of the installment (principal + interest), ensuring the full upcoming installment is deposited three days before its due date. The FSRA maintains one full installment (principal + interest) throughout the Sukuk's tenure. As per client representation, the estimated amount is maintained in both FPA and FRSA accounts. By the end of March '25, fifteen principal installments totaling PKR 972mln out of PKR 1,250mln have been successfully paid. The most recent payment, comprising PKR ~69.4mln in principal and PKR ~12.9mln in markup, was made at the end of March '25.