TPL Trakker (Private) Limited (PSX: TPLT) was incorporated in Pakistan in December 2016 as a private limited company. Previously it was known as TPL Vehicle Tracking (Private) Limited. The company is a subsidiary of TPL Corporation Limited while TPL Holdings (Private) Limited is the parent company of TPLT. The company is engaged in the installation and sales of vehicle tracking devices along with fleet management services. The company also provides Internet of things (IoT) solutions to a wide range of industries. Some of the services offered by TPLT includes cold chain monitoring, fuel monitoring, Genset monitoring, Driver Behavior monitoring etc. Pattern of Shareholding As of June 30, 2025, TPLT has a total of 187.263 million shares outstanding which are held by 1629 shareholders. Associated companies have the majority stake of 63.47 percent in the company followed by Modaraba and Mutual funds holding 17.82 percent shares. Local general public accounts for 8.69 percent shares of the company while foreign general public hold 1.80 percent shares. The remaining shares are held by other categories of shareholders. Historical Performance (2020-25) Except for a dip in 2020 and 2025, the topline of TPLT posted year-on-year growth in all the years under consideration. However, its bottomline stayed in the negative zone in all the years barring 2022 and 2024. The margins of the company hit the rock bottom in 2020 followed by a recovery in 2021 and 2022. In 2023, while gross and operating margins continued to improve, net margin hit the negative zone. TPLT’s margins registered significant recovery in 2024 followed by a drastic fall in 2025. The detailed performance review of the period under consideration is given below. In 2020 the company’s revenue plunged by 9.40 percent year-on-year to clock in at Rs.1605.24 million. This was on account of a massive decline in the sales of automobile sector. The outbreak of COVID-19 not only restricted the industrial and business activity but also put a dent on the social activity. This resulted in drastically lesser contribution from automobile customers. Not only did the equipment installation and sales dipped, monitoring fee and rental from tracking devices also remained lackluster during the year. Sales decline was partially offset by navigation fee and E-ticketing fee, as during the year, TPL Maps (Private) Limited and TPL Rupiya (Private) Limited were merged into TPLT. Cost of sales enlarged by 59.32 percent year-on-year in 2020, resulting in 61.87 percent thinner gross profit recorded by TPLT in 2020. GP margin dropped to 23.86 percent in 2020 as against GP margin of 56.71 percent recorded in the previous year. Lower business activity resulted in 63.33 percent curtailment of distribution cost during the year. Administrative expenses posted a marginal 0.57 percent growth in 2020, yet TPLT posted operating loss worth Rs.92.38 million during the year as against the operating profit of Rs.349.99 million recorded in the previous year. Finance cost magnified by around 66.25 percent year-on-year in 2020 on the back of increased borrowings coupled with higher discount rate in the first three quarters of 2020. In 2020, TPLT’s gearing ratio posted a massive jump (see graph). Other income performed exceptionally well in 2020 and grew by 162.22 percent year-on-year in 2020 mainly on the back of income from related parties and non-financial assets. TPLT posted a massive net loss of Rs.458.52 million in 2020 as against net profit of Rs.35.87 million recorded in the previous year. Loss per share stood at Rs.3.81 in 2020 as against EPS of Rs.0.30 posted in 2019. In 2021, all the business segments of TPLT performed above expectations. Navigation revenue went up an extra mile to buttress the topline which grew by 17.51 percent year-on-year to clock in at Rs.1886.24 million in 2021. Cost of sales inched up by 4.74 percent year-on-year in 2021, resulting in 58.22 percent rise in TPLT’s gross profit with GP margin climbing up to 32.13 percent. The company kept a strict check on its operating expenses which resulted in operating profit of Rs.189.97 million with OP margin of 10.10 percent in 2021. Research and development expense grew by 237.52 percent in 2021. Lower discount rate during the year enabled the company to cut down its finance cost by 24.41 percent year-on-year, yet finance cost was big enough to turn operating profit into net loss of Rs.120.20 million in 2021. Loss per share stood at Rs.0.64 in 2021. In 2022, TPTL recorded 11.68 percent year-on-year growth in its net sales which clocked in at Rs.2106.47 million. Connected car segment posted 7 percent rise during the year while digital mapping and location services registered a phenomenal 21 percent growth in its revenues during 2022. TPLT recorded 23.12 percent bigger gross profit and GP margin of 35.43 percent in 2022 owing to better sales mix, improved charges as well as cost control measures. Operating expense grew in line with inflationary trend and also because of added employees in the workforce which took the tally to 901 in 2022 versus 809 in the previous year. Operating profit improved by 47.70 percent in 2022 and OP margin mounted to 13.31 percent. The company was also able to put brakes on its finance cost amidst high discount rate, by squeezing its gearing ratio to 49 percent in 2022 versus gearing ratio of 59 percent posted in 2021. This resulted in net profit of Rs.197.12 million in 2022 with NP margin of 9.36 percent in 2022 and EPS of Rs.1.05. TPLT posted the highest EPS and NP margin in 2022. In 2023, TPLT’s topline inched up by 6.96 percent over last year to clock in at Rs.2253.14 million. While monitoring fee and rentals from tracking devices continued to march up, navigation revenue drastically fell in 2023. Equipment installation and sales also declined during the year. Lackluster performance of automobile and POL sectors were the main culprits behind sluggish topline growth attained by TPLT in 2023. Gross profit grew by 12.67 percent year-on-year in 2023 on account of cost control measures resulting in a better GP margin of 37.32 percent. Distribution expense inched up by 6.41 percent year-on-year in 2023 on the back of higher salaries of sales force, rent, rates and taxes as well as computer expense incurred during the year. While the company reduced its workforce from 901 employees to 811 employees in 2023, adjustment in minimum wage rate, higher legal and professional charges, vehicle running & maintenance as well as computer expense drove administrative expense up by 7.89 percent in 2023. Operating profit picked up by 21.17 percent in 2023 with OP margin rising up to 15.10 percent. Finance cost soared by 63.86 percent in 2023 due to higher discount rate. Finance cost was partially offset by 51.10 percent higher other income recorded in 2023 which was the consequence of higher mark-up income, service fee charged from Astra Location Services (Private) limited and account balance of TPL Properties Limited written off during the year. The company posted net loss of Rs.42.27 million in 2023 with loss per share of Rs.0.23. In 2024, TPLT recorded 12.85 percent year-on-year rise in its topline which clocked in at Rs,2542,60 million. Except navigation revenue, all other segments - equipment installation & sales, monitor fee, rentals from tracking devices and other services - registered improvement in revenue in 2024. Cost of sales slid by 1.64 percent in 2024 despite higher revenue. This was the result of constant cost control initiatives put in place by the management. TPLT was able to record 37.18 percent increase in its gross profit in 2024 with GP margin climbing up to 45.36 percent – the highest level achieved since 2020. Distribution expense ticked up by 0.73 percent in 2024 due to higher salaries of sales force which was greatly offset by reduced sales promotion budget allocated for the year coupled with curtailed vehicle running & maintenance charges incurred during the year. Administrative expense escalated by 6.19 percent in 2024 due to higher payroll expense despite the fact that the company downsized its workforce from 811 employees in 2023 to 708 employees in 2024. TPLT recorded 84.66 percent improvement in its operating profit in 2024 with OP margin rising up to 24.68 percent. Other expense mounted by 119.20 percent in 2024 due to higher provision booked against dues from related parties. R&D expense also ticked up by 3.59 percent in 2024. Finance cost dropped by 3.87 percent in 2024 due to lesser outstanding borrowings recorded during the year. This resulted in TPLT’s gearing ratio falling down to 37 percent in 2024. Other income slid by 19.96 percent in 2024 due to lower markup income recognized from current account, no gain recorded on sales of fixed assets and no amortization of government grant recorded during the year. TPLT recorded net profit of Rs.135.024 million in 2024 which translated into EPS of Rs.0.72 and NP margin of 5.31 percent. In 2025, TPLT’s net sales diminished by 30.26 percent to clock in at Rs.1773.17 million. Except for monitoring fee, the other two sources of revenue – equipment sales & installation and rentals from tracking devices – posted a massive fall in 2025. The decline in revenue during the year was the result of discontinuation of Safe Transport Environment (STE) Project with Pakistan Customs/ Federal Board of Revenue. During the year, the company acquired 100 percent stake in TPL Security Services Limited to broaden its product portfolio and attain operational efficiency. During the year, Trakker Middle East also entered into strategic equity partnership with the Gargash Group, which acquired 50.1% shareholding in TME. As a consequence, TPLT’s ownership was diluted, and TME was reclassified from its subsidiary to an associate. Cost of sales dipped by 25 percent in 2025 predominantly due to a decline in the cost of equipment sold and lesser activation and connection charges recorded. Gross profit deteriorated by 36.52 percent in 2025 with GP margin falling down to 41.29 percent, reflecting the absence of STE Project. Lesser sales volume culminated into thinner salaries of sales force, which in spite of higher promotion budget, pushed down distribution expense by 13.25 percent in 2025. Drastic streamlining of workforce from 708 employees in 2024 to 300 employees in 2025 resulted in thinner payroll expense which squeezed the administrative expense by 14.40 percent in 2025. Operating profit tapered off by 55.27 percent in 2025 with OP margin falling down to 15.83 percent. Lesser allowance booked for ECL and no provisioning done for WWF resulted in 62.32 percent shrinkage in other expense in 2025. R&D expense also fell by 17 percent in 2025. Lesser outstanding liabilities coupled with the onset of monetary easing pushed down finance cost by 34.52 percent in 2025. Lesser mark-up income and thinner service fee for Astra Location Services (Private) Limited resulted in 43.13 percent plunge in other income in 2025. TPLT posted net loss of Rs.69.948 million in 2025 with loss per share of Rs.0.37. Recent Performance (1HFY26) During the first half of the ongoing fiscal year, TPLT posted 50.17 percent thinner net sales to the tune of Rs.572.88 million. This is due to high-base effect as the company was driving significant revenue from STE Project during the first half of the previous year (STE was discontinued in December 2024). Cost of sales fell by 34.79 percent in 1HFY26 with GP margin falling down to 26.82 percent versus GP margin of 44 percent recorded in 1HFY25. Excluding the effect of STE, the company’s core operations remained stable during the period. Lesser sales volume and curtailed operations are evident from decline of 34.84 percent in distribution expense and 41.47 percent in administrative expense in 1HFY26. Operating profit registered a radical fall of 98.49 percent in 1HFY26 with OP margin clocking in at 0.68 percent versus OP margin of 22.38 percent registered in 1HFY25. R&D expense also dropped by 37.31 percent in 1HFY26. Lesser outstanding liabilities and monetary easing resulted in 29.20 percent plunge in finance cost in 1HFY26. Monetary easing also appears to be the cause of 57 percent weaker other income recorded in 1HFY26. TPLT posted net loss of Rs.240.129 million in 1HFY26 with loss per share of Rs.1.28. This was against net profit of Rs.89.563 million and EPS of Rs.0.48 posted in 1HFY25. Future Outlook With the closure of STE, the company is actively diversifying its business portfolio to boost its financial performance. Digital location and mapping and Industrial IoT will continue to provide growth impetus to the company. Besides, the company is also expanding its international revenue mix. The company also launched its ever consumer navigation app which aims to focus on the pain points in Pakistan such as fuel consumption, optimized cost routing, improved navigation tools, smart home solutions etc. Besides an augmented level of diversification, the company is also aiming to deploy integrated process automation, attain supply chain optimization by anticipating demand and minimizing excess inventory, partnering with the leading tech companies to optimize its IT and connectivity costs etc. With all these measures in the pipeline, TPLT is expected to boast sustained performance and rebounding margins in the coming times.