TPL Trakker Limited is the premier satellite-based vehicle tracking company of the country in terms of market share despite presence of many competitors. It is also the domestic pioneer of the use of such technology in Pakistan. TPL Trakker is a joint venture with DigiCore of South Africa and responsible for markets in the Middle East and South Asian (MESA) region with over 150,000 units installed.
The main business of the company is to supply superior GPS, GSM & Satellite Mobile Asset Tracking, Management and Information Solutions. The company provides turnkey solutions, car tracking units, software, operational know how, deployment, data evaluation, consultancy and project management acumen. The company has further enhanced its business into the container tracking business, and it is also entering into contracts with companies like Engro Fertilizers, Fatima Fertilizer, and major cement manufacturers of the country.
The company has assigned a long-term financial status rating of A- by Pakistan Credit Rating Agency Limited (PACRA), which denotes a low expectation of credit risk and a strong capacity for timely payment of financial commitments. TPL Trakker Ltd was listed at the Karachi Stock Exchange in Karachi since June 2012.
However, the Company came back into the game with a full swing in FY14. TPL reported marked improvement in its revenues and earnings. An impressive 36 percent year-on-year growth in revenues reported in FY14, reaching to Rs 1,405 million. A segment-wise analysis of the sale numbers reviles that the increase in top line resulted from the significant growth of 65 percent in asset tracking, followed by Safe Transportation Environment (STE) which stayed operational throughout the year and contributed 24 percent to the total revenue of the company. Over the years, TPL has done extensive mapping and now their coverage include all major highways and in 503 cities in Pakistan. This intensive mapping helped TPL to double its navigation services revenue from 2.5 percent in FY13 to 5.5 percent in FY14, and the Company has monitored 50,000 containers during the financial year. As for profitability, TPL reported a 79 percent year-on-year increase in its fortunes.
Container tracking grew by 8 percent year-on-year, and it contributed 23 percent to the revenue. The 13 percent increased in the revenue came from navigation, and it has 6 percent revenue share. Within the container tracking segment, TPL monitored 51,640 consignments during FY15. The 9 percent year-on-year increase is attributable to enhanced container trips from Pakistan to Afghanistan border.
TPL has initiated and launched multiple new projects and products during FY15. These include Fuel monitoring, Live Camera, Personal tracking devices and E-ticketing solutions.
While, on the other hand, TPL has also entered into an arrangement with Telco operators to provide solutions. Due to a reduction in discount rate, the finance cost of the TPL has come down. However, distribution and administrative expenses have also increased for the Company.
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TPL Trakker Limited
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FY11 FY12 FY13 FY14 FY15
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Profitability
Gross margin 56% 53% 53% 52% 51%
Net margin 11% 9% 5% 6% 14%
Return on Equity 4% 4% 2% 3% 7%
EBITDA to sales 37% 35% 27% 27% 33%
Liquidity
Current ratio 0.74 1.01 0.97 1.13 1.48
Quick / Acid test ratio 0.71 0.95 0.86 0.98 1.32
Cash to Current Liabilities 0 0 0 0.004 0.04
Cash flow from
Operations to Sales 0.02 -0.12 0.09 0.03 -0.08
Activity & Investment
Fixed asset turnover 49% 57% 59% 75% 77%
Total asset turnover 24% 26% 27% 33% 31%
EPS (Rs per share) 0.49 0.44 0.23 0.41 0.93
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Source: Company accounts