TARC Limited has informed the Exchange about Investor Presentation
,t,.,.YJA,R^[
To, The Vice President, National Stock Exchange of India Limited, Exchange Plaza, Bandra Kurla Complex, Bandra (E) Mumbai - 400051
Scrip Symbol: TARC
December 2,2022
To, The General Manager, Deptt of Corporate S"*i."., BSE Limited, P.J. Tower, Dalal Street, Mumbai - 400001
Bquity Scrip code: 543249 Debt Scrip Code: 973928
Sub.: Investor Presentation
Dear Sir/Madam,
Pursuant to provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015,
please find enclosed a copy of Investor Presentation for your information and record.
Thanking You
F'or TARC Limited
Amit Narayan Company Secretary 420094
TARC LIMITED {FormertyAnant Raj Gtobat Limitedl, CIN: L701000L2016PLC390526 Registered office: 2nd Ftoor, C-3,Qutab lnstitutional Area, Katwaria Sarai, New Dethi- 1 10016, Tet: 011-t+12t+4300 Email: tarcltltarc.in I Website: www.tarc.in
TARC Maceo: Actual Photograph
TARC LIMITED - INVESTOR PRESENTATION, DECEMBER 2022
TABLE OF CONTENT
TARC: AT A GLANCE
STRATEGY FOR MULTIFOLD GROWTH
OPPORTUNITIES & STRENGTHS
ORGANISATIONAL BUILDUP
FINANCIAL HIGHLIGHTS
1
2
3
4
5
TARC Tripundra
TARC: AT A GLANCE
1
OVERVIEW
Leading premium real estate developer in Delhi and NCR
Premium Residential
One of the largest land bank holders in Delhi and NCR, fully paid
550+ acres
Trust built through over four decades of strong execution experience and presence in Delhi
Legacy Presence
Current plan to launch three premium residential projects in place
~ INR 5,500 Cr. GDV
Strong Financial Partner: Bain Capital, USA invested INR 1,330 Cr. as NCDs
Marquee Investors
Blackstone & ESR: Business Associates
Business Associates
4
EVOLUTION FROM CONTRACTOR TO DEVELOPER
Late 1970s
1990s
2010s
2020
2021
2022
Sustainable Business
Started as a construction contractor in Delhi
Focused on enhancing the land bank in Delhi & NCR
20 million square
Listed on BSE
Strategic sale of
• Bain Capital, USA
feet delivered
and NSE in
Warehousing land to
invested INR 1,330 Cr in
across Delhi NCR
December 2020
Blackstone and ESR
NCDs - the largest
for a total sum of INR
transaction in the North
360 Cr.
Indian market
• Launched TARC
Tripundra, premium residential, in South Delhi
• Delivered TARC Maceo
project in Gurugram
• Organizational buildup with best-in-class talent
5
FINANCIAL PARTNER: BAIN CAPITAL, USA
Infusion of INR 1,330 Cr. from Bain Capital, USA, through NCDs
All legacy financial dues with principal amount and full interest have been paid completely in first quarter of FY’23
Long term finance arrangement has helped management to focus on business development
> Year 4 65%
Year 1* 0%
Year 2 15%
Year 3 20%
Commenced voluntary prepayment of NCDs Current three projects ensuring early retirement of NCDs
Redemption schedule of Non- Convertible Debentures (NCDs)
*Year 1 = FY’23
6
KEY PILLARS FORMING A STRONG FOUNDATION
Customer
•
Integrating the buyer into the
development process for a customized
experience
• Offering experiential living to our
customers
People
• Self-driven talent pool for sustainable
business
• With an increase in the strength of our team, we aim to achieve higher levels
of growth
Execution
• Gaining customer confidence through strong
execution capability
• Creative designs to achieve experiential
living; engagement with the best Architects,
Designers and Engineers
Systems and Processes
• Advanced IT infrastructure integrated
with the existing processes
•
Industry best practices implemented through organization-wide SOPs
7
STRATEGY FOR MULTIFOLD GROWTH
2
EXECUTION OF A WELL-DEFINED BUSINESS STRATEGY
Steady transformation from Land bank holder to Developer
Benefit of over four-decade long experience and vast presence in Delhi
Targeting multifold growth in terms of new sales bookings with consistent launches of marquee projects
Additionally, the Company is monetizing non-core assets and receiving compensation for land acquisition by Government
Surplus cashflow generation will help in strengthening the future growth
Target* New Sales Booking
2,500
1,500
. r
C R N
I
400
FY’23
FY’24
FY’25
*As per management estimates
9
TARC’S LAND BANK
550+ Acres
300+ Acres
250+ Acres
In Delhi and NCR
In Delhi
In NCR
One of the largest land bank holders in Delhi and NCR, fully paid
Land holdings include Residential, Hospitality, Commercial, Retail, Warehousing, IT, Institutional and Mixed-Use developments
TARC’S LAND BANK INDICATIVE LOCATIONS IN DELHI
10
STRONG PROJECT PIPELINE OF GDV ~INR 5,500 CR.*
TARC TRIPUNDRA
PATEL ROAD RESIDENCES
Premium Luxury Residences
• Location: Bijwasan Road,
Kapashera
• Landmark: Delhi IGI Airport,
Aerocity
• USP: Luxury residential project near Delhi airport
• Status: Launched in October
TARC ISHVA
Premium Independent Floors
• Location: Sector 63-A, Gurugram
• Landmark: Worldmark, Grand Hyatt
• USP: Modern Wellness
• Status: Under Launch
Premium Ultra Luxury Residences
•
•
•
•
Location: Central West
Delhi
Landmark: Delhi Ridge
USP: Location and Ultra
Luxury Apartments
Status: Launching Soon
*GDV value by management estimates, based on prevailing market prices in that location
11
TARC TRIPUNDRA LAUNCHED IN OCT’22
Overview
Highlights
Gallery
Status
Estimated Duration
Project Details
Sales Potential
Total Area
Saleable Area
Bookings made
Construction In Progress
2022-25
~INR 900 Cr.
• The premium luxury project was launched at INR 18,500 per sq.ft. Greeted with strong response
• Located in South Delhi, opposite Pushpanjali Farms and 2,200 acres of uninterrupted greenery area. Seamless access from Dwarka, IGI airport, Vasant Vihar and Gurugram
• Offers unique amenities like, Indoor & Outdoor Pool, Indoor & Outdoor Cinema, Green building, living to its 7-tier Security and experiential residents through best-in-class amenities such as Pottery Barn, Star Gazing Deck, Barbeque Pits, Organic Garden, Artistic Arena.
2.95 Acres
• 3 towers of 11 floors each, comprising of 187
units of 3 and 4 BHKs
• Construction in full swing since July 2022
4.8 Lakh sq.ft.
• Awarded as ‘Most Admired Upcoming Project
Of The Year’ by Berkshire Media Pvt. Ltd.
INR 117 Cr. (Till 30th Sep)
Artist’s Impressions
12
TARC TRIPUNDRA PHOTO GALLERY AND SITE STATUS
ACTUAL PHOTOGRAPH
CURRENT SITE STATUS
13
CAMPAIGN ON LAUNCH OF TARC TRIPUNDRA (1/2)
Brand engagement
Print Media
Hoardings
14
CAMPAIGN ON LAUNCH OF TARC TRIPUNDRA (2/2)
Digital Campaign
Event for the Channel Partners
15
TARC ISHVA PREMIUM INDEPENDENT FLOORS
Overview
Highlights
Gallery
Under Launch: Construction of experience center has begun
• Consistent launches of projects in pipeline
• Located in Sector 63A, Gurugram
• Well developed neighborhood with landmarks
2023-25
such as Worldmark, Golf course road
~INR 800 Cr.
• Providing best in class premium residential fully- fitted apartments, along with fine club and community facilities
• Focus on increasing customer centricity with
experiential living
• Offering 450+ apartments
6.93 Acres
6.5 Lakh sq. ft.
Status
Estimated Duration
Project Details
Sales Potential
Total Area
Saleable Area
Artist’s Impressions
16
TARC PATEL ROAD RESIDENCES
Overview
Highlights
Gallery
Status
Estimated Duration
Project Details
Sales Potential
Total Area
Saleable Area
Launching Soon: Demolition of existing structure in Progress
2023-27
• High rise ultra luxury residential apartments
• Situated at one of the most prime location in the heart of Delhi, right at the main Patel Road
• To be designed by the best designers and from Singapore, Andy Fisher
architects Workshop
~INR 3,800 Cr.
•
It will be a benchmark for Delhi residential real estate market and community living, along with open areas and green spaces in the heart of the city
experiential
with
• Offering 600+ apartments
6.13 Acres
18 Lakh sq.ft.
Artist’s Impressions
17
TARC MACEO PREMIUM RESIDENTIAL
Overview
Highlights
Gallery
Completed
• ~ 650 families living in TARC Maceo
• Best-in-class project in the vicinity with lush
natural surrounding
Status
Duration
Project Details
Sales Potential
Total Area
Saleable Area
OC Received
• Located
at Sector from
91, Gurugram,
easy KMP/Dwarka
NH8,
accessibility Expressway
~INR 660 Cr. Booked- INR 590 Cr.
• Offers 80% of open space, with abundant
green and water areas
• Club Tierra – a premium rendezvous with holistic living; offers amenities like infinity pool
• TARC has tied up with leading broking firm for
15.75 Acres
sale of its remaining inventory
• Handover of balance units post receipt of OC.
Balance revenue to be booked accordingly
16 Lakh sq. ft.
Actual Photograph
18
TARC MACEO PHOTO GALLERY
ACTUAL PHOTOGRAPHS
19
OPPORTUNITIES & STRENGTHS 3
DELHI & NCR: A HIGH GROWTH MARKET
High rise & Community living
Consolidation of real estate market
Increase in customer confidence
Urbanization
• Safety & Security facilities in well-equipped high-end
apartments is a great customer attraction
• New age and Millennial Consumer preferences have shifted
towards smart housing and experiential living
• High rise permits are being granted in New Delhi
• With the Regulators in command for organized developments there is a healthy and limited competition, largely with national level players
• Setting up of RERA has brought in transparency, increased
builder accountability and improved project & service delivery
• Economic development and urbanization continues to lead
migration of people from other parts of the country to Delhi & NCR over the last few years
• Due to increasing disposable income, the luxury segment is
gaining significant traction
21
WHAT MAKES US DIFFERENT IN THE MARKET
Prime Locations
Development of premium Land
parcels
into various projects
across prime locations in Delhi &
NCR
Bespoke Quality & Luxury Living
TARC comprehends with what the customer
needs by incorporating the latest innovations in tech in its projects to build smart homes and redefining luxury through experiential living
Financial Stability
TARC has long term financing available from
marque investor and surplus cash flow to be
generated from consistent new launches
Fully Compliant and Transparent
TARC philosophy
rests
on
ethics
&
transparency with all stakeholders and building trust through proactively compliance
Systematic Approach
To achieve the highest quality results,
the
Company has adopted a systematic approach governed by strict policies and procedures
22
VALUES THAT TARC ADHERES TO
Integrity Leads Us
We believe in leading with transparency and strive to build strong relationships based on trust with all our stakeholders.
Creating Enduring Value
Our true measure of success is creating wonderful experiences for our customers by thinking out of the box.
Humility & Strength
We have a responsibility to create a welcoming, trusted and inclusive workspace that fosters warmth and individual expression.
Own the Outcome
We work together to accelerate our growth. We make everyday count. We value time and think action at every step.
The Power of We
We work towards achieving excellence collectively by empowering, recognizing and providing equal opportunity to all
Break the Mold
Our tools help us exceed expectations with creativity and imagination by aiming higher and adopting smart work practices.
A Winning Attitude
Developing a selfless and positive outlook is key to our success story.
Inculcating Gratitude
We are always thankful for opportunities obtained and success achieved in our growth journey.
Curiosity
We believe it is essential to be intellectually curious in order to be nimble and adaptive.
23
ORGANISATIONAL BUILDUP
4
OUR LEADERSHIP
Anil Sarin Chairman
Amar Sarin Managing Director & CEO
Rajeev Trehan Chief Operating Officer
Anil Mahindra Chief Land Officer
Nitin Goel Chief Financial Officer
Amit Narayan Company Secretary
Anil Gupta Head- Projects
Shuaib Ahmad Head- Sales & Marketing
Sushil Singhal Head- Investor Relations
Arijit Das Head- Design & Architecture
Muskaan Sarin Head- Branding & Communications
Amit Madan Head- People & Culture
25
CORPORATE GOVERNANCE
Transparency
Engagement with stakeholders on regular intervals: Detailed and regular communication
Management
The promoter family is completely committed to the business with a combination of senior-level professional management having long associations and a new management pool from best-in-class companies
Corporate Governance Practices
Engagement with Takshashila Consulting, led by ex-McKinsey personnel team to build internal control, systems and organization structure
SHAREHOLDING PATTERN
(As on 30th September 2022)
>1% Holder- Non-Promoter category
Ashish Kacholia – 1.86%,
Vijaykumar Patel – 1.44%
26
FINANCIAL HIGHLIGHTS
5
HIGHLIGHTS: H1 FY’23
• Achieved new sales booking
• TARC Tripundra project was
• The
Company
has
hired
• Compensation of
INR 70 Cr.
of INR 117 Cr
launched in Oct’22
• On track to achieve targeted
• Greeted with a strong response
new sales bookings for FY’23
& FY’24
• OC received in TARC Maceo – new sales and
handover
• Extensive media
campaign
has digital,
been
launched
print,
hoardings
through and
events to capture the market in
booking of balance units is in
and around Delhi NCR
progress
functional heads with 20+ years of experience in luxury
real estate in India- Mr. Shuaib
Ahmad, Sales & Marketing
Head and Mr. Arijit Das, Design
& Architecture Head, Mr. Anil
Gupta, Projects Head
• Additionally, we
have
been
joined by Mr. Sushil Singhal
in
position the Relations Head
of
Investor
from the Government
for land
acquisition
• Due process has been initiated
for enhanced compensation
• The
Government
had
acquired various land parcels
of TARC in Delhi NCR, and a significant compensation to be
received in the near future
New Sales Booking
Business Operations
Management Pool
Government Compensation
28
FINANCIALS – P&L HIGHLIGHTS (CONSOLIDATED)
Particulars
Q2 FY’23
Q2 FY’22
H1 FY’23
H1 FY’22
FY’22*
Total Income
EBITDA
EBITDA %
PBT
PAT
PAT%
58.2
39.4
161.0
62.2
129.5
97.5
188.3
300.7
66.2
(134.4)
67.7%
38.6%
75.3%
35.2%
--
13.4%
10.4
8.2
14.1%
45.1
5.3
3.3%
28.7
17.5
13.5%
41.4
2.1
1.1%
(229.3)
(232.8)
0.9
6.2
-
2.8%
INR Cr.
FY’21
220.9
29.7
• Revenue recognition based on completion. New Sales Booking is better indication of current business performance
• Progressive year-on-year topline with key projects in pipeline, accruals in due course
• Substantial cashflow in terms of new bookings and upcoming projects
• Promising negotiations for strategic transactions
• Successfully completed land sales deals with marquee investors like Blackstone & ESR
*During FY22, undertaken a readjustment of inventory of one of the projects in compliance with Indian Accounting Standards and valued the same on lower of cost or market value. The Company’s continuance of normal business operation does not anticipate loss of profit going forward.
29
FINANCIALS – BALANCE SHEET HIGHLIGHTS (CONSOLIDATED)
Particulars
Assets
Investment Properties (incl. under dev)*
Inventories
Other Non Current Assets
Other Current Assets
Total Assets
Equity and Liabilities
Total Equity
Borrowings
Other Liabilities
Total Liabilities
* Fair value of investment properties
H1 FY’23
H1 FY’22
FY’22
INR Cr.
FY’21
781.9
709.6
805.2
833.9
1,356.8
1,474.7
315.3
315.8
600.3
1,031.9
1,065.2
1,170.7
244.1
847.8
1,428.8
103.8
3,163.6
3,429.6
3,080.3
3,412.3
1,349.5
1,377.6
436.5
1,566.8
1,217.0
645.8
3,163.6
3,429.6
1,332.1
1,173.6
574.6
3,080.3
2,161.9
1,564.6
1,315.0
532.7
3,412.3
2,922.0
30
KEY TAKEAWAYS
Immense Industry Opportunities
Delhi presents a vast opportunity of highly growing and sustainable premium residential real estate
TARC: Building a Premium Brand
TARC is gaining momentum in its launches, and is building its brand through increased engagement on the customer end
Prudent Financing
TARC has prudently arranged its financing and is focused on business development
Corporate Governance
TARC’s focus remains on organizational build up and commitment towards corporate governance
31
DISCLOSURE
This presentation contains certain forward-looking statement concerning TARC’s future business prospects and business profitability, which are subject to a number of risks and uncertainties & the actual results could materially differ from those in such forward-looking statements. The risks and uncertainties relating to such statements include, but are not limited to, earnings fluctuations, our ability to manage growth, competition, economic growth in India, ability to attract & retain highly skilled professionals, time & cost overruns on contracts, government policies and actions related to investments, regulation & policies etc., interest & other fiscal policies generally prevailing in the economy. The Company does not undertake to make any announcements in case any of these forward-looking statements become incorrect in future or update any forward-looking statements made from time to time on behalf of the Company
32
THANK YOU!
For more information contact:
TARC Limited
investors@tarc.in www.tarc.in
Kaptify Consulting LLP Investor Relation Advisory
contact@kaptify.in || (M): +91 – 845 288 6099 www.kaptify.in