PACRA keeps TPL Trakker's Sukuk ratings stable at "A+"

May 24, 2024 (MLN): Pakistan Credit Rating Agency Limited (PACRA) has maintained the ratings of TPL Trakker Limited's (PSX: TPLT) debt instrument (Sukuk) at "A+" for the long term with a stable outlook forecast, according to the latest press release issued by PACRA.

TPL Trakker 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.

TPL Trakker Limited, a key player in Pakistan's tracking industry is focusing on high-growth segments.

With a niche in digital mapping and location services, the company emphasizes innovation, partnerships, and product development for stable growth.

TPL Trakker maintains its edge with diversified solutions and Internet of Things (IoT) integration. Despite margin pressures, it's innovating with products like Pakistan's first native navigation App and finalizing platforms for operational efficiency amidst modest revenue growth.

The strategy of TPL Trakker is multifaceted and focused on diversification, innovation, market penetration and expansion.

During the period-end on 9MFY24, the company reported an increase in topline of 15% and stood at Rs1.906 billion (9MFY23: Rs1.651bn).

The profit of the Company increased to Rs0.106bn during 9MFY24 whereas in 9MFY23, it stood at a loss of 0.079bn. As of Mar'24, the equity of the company stood at Rs2.48bn (FY23: Rs2.37bn).

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.

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