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The Pakistan Credit Rating Agency Limited
Press Release

Date
14-Jun-19

Analyst
Raniya Tanawar
raniya.tanawar@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Entity Ratings of TPL Trakker Limited

Rating Type Entity
Current
(14-Jun-19)
Previous
(13-Dec-18)
Action Maintain Maintain
Long Term A- A-
Short Term A2 A2
Outlook Stable Stable
Rating Watch - -

The ratings incorporate TPL's prominent position in Pakistan’s tracking industry, emanating from its multifaceted product portfolio and superior technology infrastructure. This is adding value to the top line; though incremental cash flows from new segments are critical for growth. Company has added more flings to its product portfolio in order to sustain in a market that has maturity level and is facing a demand shift. The company is strategizing to optimize the working capital cycle through diversifying its product portfolio; including internet of things and hardware - auto business. Moreover, company having an injection of PKR ~600mln from its sponsor, which will be utilized for TPL Trakker's operations, of which PKR ~500mln would be allocated for expansion and enrichment of its own product slate. TPL Trakker is projecting that it will muster a sizable revenue even if it continues to garner a fraction of the expected container movement. The company’s rising debt financing due to increase in key interest rate of the country, has kept its financial profile under pressure. Keeping view of muted growth in revenue and loss suffering bottom line for the period under review, the outcome of upcoming projects, yet to unfold, and adherence to financial discipline is crucial.
The ratings are dependent upon development of sustainable revenue streams and restoration of positive performance indicators. Meanwhile, keeping leveraging in check is imperative. The ratings would also take into account the out turn of the forthcoming ventures to transpire into financial results.

About the Entity
TPL Trakker Limited (TPL) – a wholly owned subsidiary of TPL Corp Limited – is a vehicle tracking and fleet management solutions, provider. TPL Corp is a ~57% subsidiary of TPL Holdings.
The Board consists of four directors; all four of them including the CEO, are representatives of TPL Corp
Mr. Sarwar Ali Khan is the CEO of the company. Mr. Khan, having more than two decades of experience, has been associated with the company for the last two years. He is directly reportable to the Group CEO, Mr. Ali Jameel.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.