Lahore, December 13, 2018 (PPI-OT): The ratings incorporate TPL’s leadership position in Pakistan’s tracking industry, emanating from its multifaceted product portfolio and superior technology infrastructure. STE is exposed to border closure risk, nonetheless company has expanded its cargo monitoring business in Pakistan. The company has secured Export Processing Zone mandate which is the 2nd phase of Safe Transport Environment project (STE). This is significantly adding value to the top line; incremental cash flows from new segments are critical for sustainable growth.
The company escalated its rental model based business as against sale model. CPEC project is another emerging lucrative opportunity. TPL Trakker is projecting that it will muster a sizable revenue even if continues to garner a fraction of the expected container movement. Multiple yet upcoming diversified revenue streams, ensures sustainable inflows for the business. The company is raising debt by way of Sukuk bond, bulk of which is utilized in retiring the existing borrowings.
The ratings are dependent on upcoming potential projects with strengthened business revenue and financial health. Adherence to good financial discipline while harnessing working capital management and strengthening debt servicing capacity is vital.
For more information, contact:
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com