TPL Trakker Limited (“the Company’’ or "TPL Trakker") is a public listed Company. The Company's registered office is situated at Plot No. 1, Sector # 24 , near Shan Chowrangi, Korangi Industrial Area, Karachi.

TPL Vehicle Tracking (Private) Limited (the Company) was incorporated in Pakistan on December 27, 2016 as a private limited Company under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). Effective from November 30, 2017, the name of the Company was changed to TPL Trakker (Private) Limited. The Company was later converted into a public listed Company on January 17, 2018, and accordingly, the name was changed to TPL Trakker Limited.

TPL Trakker’s core business includes vehicle tracking and fleet management solutions. TPL Trakker is now making its way into new business arenas by stepping into the Internet of things-IoT service provision. Post-merger, digital mapping, and location-based services are yet another auspicious addition to its product offerings. It is serving leading corporate clients; corporate, retail, and institutional sectors constitute the client mix and operates a network of 8 branches, across major cities of Pakistan with an installation center in Karachi.

TPL Corp. Limited is the major shareholder of the Company which beneficially owns ~64% shareholding. The rest of the shareholding is held with Banks, DFI, NBFI, Modarabas, insurance, and General Public. TPL Corp is a ~53% subsidiary of TPL Holdings.

The ownership structure is deemed stable, supported by strong leadership capabilities emanating from parent Company-TPL Corp. which owns a major stake in all group entities, running different business lines.

TPL Trakker's sponsors bring over two decades of industry leadership in telematics and IoT solutions, with a strong portfolio of strategic investments and innovative solutions. They are committed to corporate social responsibility, supporting education, health, and environmental initiatives. TPL Corp. Limited is majorly owned by TPL Holdings, and has extended footings in diversified business avenues with a sizeable portfolio of strategic investments, representing firm business profiles. Key figure, Mr. Jameel Yusuf, the Group Chairman and Director, has been associated with TPL Trakker Limited since 2016. He brings extensive industry knowledge and experience, having been honored with numerous awards and accolades. Notably, he received the Presidential Award “Sitara-e-Shujaat” for his gallantry services in August 1992.

The group's business portfolio encompasses various segments, including asset tracking, insurance, real estate, energy, financial services, and container tracking. Additionally, it features diversified business avenues, all demonstrating adequate financial strength.

The board of directors (Bod's) is composed of eight members, featuring one female director and four non-executive directors. Bod's also includes two independent directors.

All Board of Directors (BoD) members are seasoned professionals with experience in managing diverse business affairs. The independent directors are well-regarded experts with broad industry knowledge and diverse expertise. Mr. Jameel Yusuf, a businessman by profession is the Chairman of TPL Trakker Limited. He also serves as the Chairman of TPL Corp Limited with vast expertise expanded in managing various business ventures.

The board has formed two committees namely i) Audit and ii) HR Committee, which are chaired by independent directors. During FY24, three board meetings were held. Attendance of board members in these meetings remained strong and the meeting minutes are documented adequately.

The Company has its own internal audit function which reports directly to the board Audit Committee. BDO Ebrahim & Co, Chartered Accountants are the external auditors of TPL Trakker. They have given an unqualified opinion on the financial statements for the year ended June 2024.

The Group is organized into multiple operational entities, each led by a specialized management team tailored to its specific functions. Clear reporting lines and well-defined roles and responsibilities ensure efficient oversight and coordination. Currently, all key positions are filled, maintaining a stable and effective organizational structure. TPL Trakker maintains a well-defined yet concentrated business process with established real time management systems.

The group's management team comprises highly qualified professionals with extensive skills and diverse experience. TPL Trakker's leadership portfolio includes a wealth of seasoned experts. Notably, Mr. Amjad Waqar, has replaced Mr. Rao Salman as the new CEO, who brings over ~22 years of experience working with high-profile clients and industries. He joined the company in 2022 and was appointed CEO in FY24. Newly appointed CFO of the Company, Mr. Ghalib Jalees, brings with him wealth of experience spanning over two decades in the finance and corporate sector.

The Company has an able management team. The long association of the management team with the group bodes well for the overall growth of the Company. All pertinent issues are resolved at department levels by the department heads and managers.

The organization has implemented the Oracle ERP suite to automate its installation and repair center countrywide. This solution has completed integration with the Company’s financial and Customer Relationship Management (CRM) enterprise applications. ERP facilitates information flow between all business functions inside the organization and manages connections to outside stakeholders.

An effective internal control system, along with clear lines of responsibility and authorization, is existed. This is complemented by a robust technological infrastructure that supports all advanced technological solutions, ensuring proficient business operations and timely reporting.

The tracking industry in Pakistan is rapidly evolving, driven by advancements in IoT and telematics. Despite economic challenges, the sector continues to innovate and expand through strategic partnerships and technological enhancements. A significant portion of demand in the tracking services industry comes from the automobile sector, with vehicle tracking being the most common application. Although the automobile industry is currently facing economic difficulties, the tracking business is expected to shift its focus more towards fleet management and container tracking in the future. Additionally, there is a growing trend of service delivery applications aimed at maximizing consumer convenience. With inflation showing signs of easing and recent reductions in the Monetary Policy, the industry's outlook appears more favorable.

TPL Trakker Limited is the only Company in its segment listed on the Pakistan Stock Exchange (PSX), while all other Companies in this sector are privately held. The main players in the industry include I-Tech, Tracking World, and Falcon I. These Companies primarily offer conventional telematics & IOT solutions. Despite increasing challenges and competition, management claims to hold ~42% of the market share in the tracking and fleet management industry, continuing to outperform the market. This success is primarily due to TPL Trakker's strategic shift towards new avenues such as the Internet of Things (IoT), rather than relying solely on the vehicle tracking market.

TPL Trakker's revenue mainly comprises i) Equipment installation sales ii) Rental from tracking devices iii) Monitoring fees iv) Navigation income v) E ticketing income and vi) Other services. During FY24, revenue surged by 13% to PKR 2.5bln, up from PKR 2.2bln in FY23, driven by increased revenue of IoT and cost reduction initiatives taken by management in FY24. Approximately ~53% of the revenue comes from the rental of tracking devices followed by monitoring income. The revenue base is further expected to augment in coming periods in view of growth in the Internet of Things (IoT), CPEC, and transshipment projects begin to take up pace. Location-based services are yet another promising segment to add more value to the business.

TPL's gross profit margins for FY24 were ~45%, up from ~37% in FY23. The net profit margin also saw a significant turnaround, reaching ~5.3%, compared to a loss of -1.9% in FY23. This improvement was primarily driven by increased IoT revenues and ongoing cost reduction initiatives. The bottom line showed a profit of PKR ~135mln in FY24, compared to a loss of PKR -42mln in FY23.

Multiple yet diversified revenue streams ensure sustainable inflows for the business. The Company has secured the Export Processing Zone mandate which is in the 2nd phase of the STE project covering and from container movement from Karachi Port to Export Processing Zone. In the near future, the EPZs will be covering dry ports as well. Additionally, the introduction of integrated products, ‘connected cars', in collaboration with auto manufacturers and near-time CPEC project routing is expected to support the Company's revenues. Moreover, a revised strategy is formulated with the TPL Maps division being carved out from TPL Trakker as a separate entity duly named ‘Astra Location Services (Pvt) Ltd’.

TPL's working capital requirements arise from credit allowances to corporates and financial institutions, financed through short-term borrowings. In FY24, the cash cycle was reduced to ~69 days, down from ~113 days in FY23. According to industry norms, the ageing analysis shows that most debtors, primarily corporate clients, take at least four months to pay.

During FY24, free cash flows from operations (FCFO) amounted to PKR ~935mln, up from PKR ~804mln in FY23. Coverage ratios improved to ~2.0x in FY24, compared to ~1.5x in FY23 due to improved cash glows in period under review. The Company reported interest and core coverage ratios of ~1.8x and ~2.0x, respectively, in June 2024, up from ~1.5x and ~1.6x in June 2023.

As of FY24, the Company has an equity base of PKR 2.5bn, up from PKR 2.3bn in FY23. The Company's debt portfolio includes a mix of short-term and long-term borrowings. The gearing ratio improved to ~39% by the end of June 2024, compared to ~45% in June 2023. Total borrowings decreased to PKR 1.59bn in FY24 from around PKR 1.9bn in FY23.