PACRA Maintains Entity Ratings of TPL Trakker Limited

The ratings incorporate TPL Trakker's ("the Company" or “TPLT”) prominent position in Pakistan’s tracking industry, emanating from its multifaceted product portfolio and sanguine technology infrastructure. The Company is adding more diversity and flexibility to its existing product portfolio in order to sustain a position as a tech savvy solutions provider. Tracking services segment relies significantly on the growth of automobile industry, there had been significant recovery in this sector during FY21, which is a positive sign. There is an increasing trend of services / delivery apps catered towards providing consumer with maximum convenience. The development of various special economic zones alongside a number of CPEC projects has created opportunities in cargo tracking and fleet management. In tracking segment, TPLT is creating diversification by exploring new and untapped avenues both, product and geography wise. Looking ahead, the Company is focusing on vertical specific solutions for industries such as, manufacturing, telecommunication, Oil & Gas and transportation. There is developing trend on digitalization and shifting to IoT solutions to bring multiple efficiencies and TPLT is positioned well to take advantage of this opportunity. In digital mapping & LBS segment, the focus of the TPLT is to introduce a new dimension of digital maps platform which will enable movers to have a wholesome travelling experience with smart companionship, travel assistance, tour planning, and facilitation through a single integrated application. On the operational front, multiple revenue generating avenues are near to completion with major portion of capital expenditure already incurred. The sponsors have a good understanding of the business and the Company is led by experienced management. Financial profile of the Company is demonstrated by stretched working capital and moderate cash flows where borrowings are a mix of short term and long term. Keeping view of modest growth in revenue and reduction in loss relative to last year, the outcome of upcoming projects remain critical.
The ratings are dependent upon successful translation of the upcoming ventures into sustainable revenue streams and positive performance indicators such as retaining sufficient cash flows, profits and margins where adherence to financial discipline is crucial.

About the Entity
TPL Trakker Limited (TPLT) – is a Public Listed Company which is majorly (64%) owned by TPL Corp Limited. TPLT is a telematics solution provider and the core business mainly comprises vehicle tracking, fleet management, Internet of things (IoT) and Digital mapping services. BoD of the Company comprises eight members, headed by the Chairman Mr. Jameel Yusuf. Mr. Sarwar Ali Khan is the CEO of the Company, having more than a decade of experience and has been associated with the Company for the last five years.