The Pakistan Credit Rating Agency Limited
Press Release


Madiha Sohail

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PACRA Maintains the Rating of TPL Trakker Limited | Sukuk

Rating Type Debt Instrument
(07-Jun-22 )
(07-Jun-21 )
Action Maintain Initial
Long Term A+ A+
Short Term - -
Outlook Stable Stable
Rating Watch - -

TPL Trakker Limited (or the "Company") is in the business of providing superior quality GPS, GSM & Satellite Mobile Asset Tracking Management, and Information Solutions. The assigned rating takes into account the Company’s prominent position in Pakistan’s tracking industry, emanating from its multifaceted product portfolio and sanguine technology infrastructure. As diversity becomes inevitable to sustain in its operating segment, the Company is gradually shifting toward business avenues that are more beneficial for the Company’s growth. The new segments have already achieved above par results, however, incremental yet consistent cash flows remain pivotal. With a niche service area like Digital Mapping and location services, the Company is focused on innovations, partnerships, product development, and direct business development – both in B2B and B2G, to drive stable and sustainable growth for the rest of the year. The 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. Recently, in Apr’22 the Company has redeemed its long term Sukuk amounting PKR 600mln. While successfully made the repayments of profits and principal installment falling due on 29-Mar’22. Modest growth in revenue and reduction in loss relative to last year, signals easing of pressure on servicing of upcoming financial obligation.
The ratings are dependent upon the strength of the underlying security of the instrument. The instrument is secured through a tiered security structure. In addition to this, specific comfort to the assigned ratings is being drawn from the inclusion of a pre-default mechanism, comprising a facility payment account and facility service reserve account in which one installment will be maintained.

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.

About the Instrument
TPL Trakker Limited has issued a secured, OTC listed & Privately placed Sukuk of the amount PKR 1.25bln in March 2021. The instrument carried a profit rate of 3MK + 300bps with a tenor of five (5) years (inclusive of a 6months grace period). The purpose of the Sukuk is to meet the Company's working capital requirement, investment in group companies, and partial debt repayment. Sukuk will be redeemed after eighteen (18) equal quarterly payments in March 2026.

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.