PACRA maintains entity ratings of TPL Trakker Limited (Sukuk)

June 08, 2023 (MLN): Pakistan Credit Rating Agency Limited (PACRA) has maintained entity ratings of TPL Trakker Limited (PSX: TPLT) Sukuk at "A+" for the long term with a stable outlook forecast, latest press release issued by PACRA showed.

TPLT is in the business of providing superior quality GPS, GSM & Satellite Mobile Asset Tracking Management, and Information Solutions.

The company has issued a secured, OTC-listed & privately placed Sukuk in the amount of Rs1.25 billion in March 2021.

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 services 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.

During the nine-month period that ended on Mar'23, the company reported a topline of Rs1.69bn (Mar'22: Rs1.50bn).

While the loss of the company increased to Rs0.08bn whereas, in Mar'22, it stood at Rs0.07bn.

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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