The Pakistan Credit Rating Agency Limited
Press Release


Sohail Ahmed Qureshi

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PACRA Maintains Entity Ratings of TPL Trakker Limited

Rating Type Entity
(23-Dec-22 )
(23-Dec-21 )
Action Maintain Maintain
Long Term A- A-
Short Term A2 A2
Outlook Stable Stable
Rating Watch - -

The ratings incorporate TPL Trakker's ("the Company" or “TPLT”) prominent position in Pakistan’s vehicle tracking industry, emanating from its multifaceted product portfolio and robust technology infrastructure. As an industry pioneer operating for over two decades, the Company was able to achieve synergistic diversification of its portfolio and offers tailored solutions to a wide array of clients and sectors driving a sustainable edge and leading market position in Telematics, Internet of Things (IoT) and Data analytics. Tracking segment typically relies on the growth of the automobile industry, which remains under pressure due to import restrictions in the last quarter of FY22. That said, the overall market penetration across both heavy and light vehicles remains untapped and the Company has shown consistent growth with major clients in accelerating their fleet digitization journeys, which are still in their infancy in Pakistan. TPLT is further complementing its offering with a growing ecosystem of sensors and IoT devices coupled with real-time visibility and analytics across both web and mobile dashboards to provide a seamless customer experience. Overall growth in digital commerce alongside future development of special economic zones and CPEC projects are creating new opportunities across cargo tracking and fleet management which the Company is poised to benefit from. TPLT will soon be launching a new mobile App as well as a device agnostic IoT dashboard to leverage our growing ecosystem via a SaaS-based (Software as a Service) platform providing visibility and efficiencies across the customer supply chain. As part of their strategy, TPL Maps has also been carved out from TPL Trakker as a wholly owned subsidiary named “Astra Location Services (Pvt) Ltd”. This will enhance dedicated focus and potentially invite external capital investment to bolster development and build new, localized digital mapping products and services through a single integrated platform. On the operational front, multiple revenue-generating avenues are near completion with a major portion of capital expenditure already incurred. The sponsors have a deep understanding of the business and the Company is led by experienced management. Financial profile of the Company is demonstrated by stretched working capital cycle and moderate coverages and cash flows. Due to increase in the cost of doing business, there is consistent pressure on margins and profits as depicted in 1QFY23. Capital structure is leveraged where borrowings are a mix of short-term and long-term. Keeping a view of modest growth in revenue the outcome of upcoming projects remains critical.
The ratings are dependent upon the successful translation of 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 and IoT solutions provider and the core business comprises mainly of vehicle and container tracking, fleet management, IoT solutions and Digital mapping services. BoD of the Company comprises eight members, headed by the Chairman Mr. Jameel Yusuf. Mr. Muhammad Harris Jamali is the CEO of the Company, and has over 15 years of experience with strong expertise in strategy, finance, organizational development, and business transformation across US, UK, Europe, Latin America, India, China, the Middle East and Pakistan.

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.