PACRA Maintains Rating of TPL Trakker Limited | Sukuk-I | May-16

Lahore, June 13, 2018 (PPI-OT): The ratings incorporate TPL’s leadership position in the tracking industry, emanating from its diverse product portfolio and superior technology infrastructure. STE is exposed to border closure risk, never the less the company is expanding its cargo monitoring business in Pakistan. This would add significant revenue to the top line; incremental cash flows from new segments are crucial to the growth. The company is also endeavoring to switch to rental model as against sale model.

CPEC is also an emerging opportunity. TPL Trakker is projecting that it will muster a sizable revenue even if it is able to garner a fraction of the expected container movement. Revenue augmentation is also expected to foster from Auto hardware sales: Navigation systems, 360 degree Cameras and Parking Sensors. The deal is at an advanced stage. The company is raising debt by way of Sukuk bond, bulk of which will be utilized in retiring the existing borrowing

The ratings are dependent upon the improved risk profile with strengthened business revenue and financial health. Herein revenues from new projects need to transpire, as projected. Adherence to good financial discipline while harnessing working capital management and strengthening debt servicing capacity is vital.

For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425

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