TARC Limited has informed the Exchange about Investor Presentation
TARC
THE ANANT RAJ CORPORATiON
To, The Vice President, National Stock Exchange of India Limited, Exchange Plaza, Bandra Kurla Complex, Bandra (E) Mumbai - 400051
Scrip Symbol: TARC
Jlune I,2023
To, The General Manager, Deptt of Corporate Services, BSE Limited, P.J. Tower, Dalal Street, Mumbai - 400001
Equity Scrip code: 543249 Debt Scrip Code: 973928
Sub.: Investor Presentation
Dear Sir/Madam,
Pursuant to provisions of SEBI (Listing Obligations and Disclosure Requirernents) Regulations 2015,
please find enclosed a copy oflnvestor Presentation for your infonnation and record.
Thanking You
For TARC Limited
Amit Narayan Company Secretary A20094
TARC LIMITED (FormerLy Anant Raj Gtobat Limitedl, CIN: 170100DL20'16P1C390526 Registered office: 2nd FLoor, C-3,Outab lnstituiional Area, Katwaria Sarai, New Dethi- I 10015, Tet: 011-412t+4300 Emait: tarcl?ltarc.in I Website: www.tarc.in
TARC Maceo: Actual Photograph
TARC LIMITED - INVESTOR PRESENTATION, JUNE 2023
TABLE OF CONTENT
TARC: AT A GLANCE
STRATEGY FOR MULTIFOLD GROWTH
OPPORTUNITIES
ORGANISATIONAL BUILDUP
FINANCIAL HIGHLIGHTS
1
2
3
4
5
TARC Tripundra
TARC: AT A GLANCE
1
OVERVIEW
Leading Luxury Real Estate Developer from Delhi
Luxury Residential
Trust built through over four decades of strong execution experience and presence in Delhi
Legacy Presence
Current plan with three premium residential projects
~ INR 5,500 Cr. GDV
4
EVOLUTION FROM CONTRACTOR TO DEVELOPER
Late 1970s
1990s
2010s
2020-2021
2022
2023
Sustainable Business
Started as a construction contractor in Delhi
Focused on enhancing the land bank in Delhi & NCR
20 million square
• Listed on BSE
• Bain Capital, USA
• Delivered TARC
feet delivered
and NSE in
invested INR 1,330 Cr. in
Maceo project in
across Delhi NCR
December 2020
NCDs - the largest
Gurugram
• Strategic sale of
Warehousing land
transaction in the North Indian market
•
INR 520 Cr. sales booking – reaching best
to Blackstone and
• Launched TARC
ever new heights in
ESR for a total sum of INR 360 Cr.
Tripundra, premium residential, New Delhi
FY’23
• 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 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%
Fulfilled payment obligations ahead of its time Current three projects ensuring retirement of NCDs
Redemption schedule of Non- Convertible Debentures (NCDs)
*Year 1 = FY’23
6
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 project sales value with consistent launches of marquee projects
Target* Project Sales value
2,500
1,500
. r
C R N
I
520 400
Additionally, the Company is monetizing non-core assets and receiving compensation for land acquisition by Government
FY’23
FY’24
FY’25
Surplus cashflow generation will help in strengthening the future growth
*As per management estimates
8
STRONG PROJECT PIPELINE OF GDV ~INR 5,500 CR.*
TARC TRIPUNDRA
Luxury Residences
• Location: Bijwasan Road,
Kapashera
• Landmark: Pushpanjali
Farms
• USP: Luxury residential project near Delhi airport
• Status: Launched in October
PATEL ROAD
RESIDENCES
Ultra Luxury Residences
•
•
•
•
Location: Central West Delhi
Landmark: Delhi Ridge
USP: Location and Ultra Luxury
Apartments
Status: Launching Soon
TARC
63-A RESIDENCES
Luxury Residences
• Location: Sector 63-A,
Gurugram
• Landmark: Worldmark, Golf
Course Extension Road
• USP: Modern Wellness
• Status: Launching Soon
*GDV value by management estimates, based on prevailing market prices in micro markets and subject to changes as per Govt. approvals
9
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.
2.95 Acres
4.8 Lakh sq.ft.
INR 450+ Cr. (Mar 2023)
• Our premium luxury project has exceeded all expectations in a remarkably short time frame thanks to the overwhelming response from buyers.
• 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 Theatre, Green building, 7-tier Security and experiential living to its residents through best-in-class amenities such as Pottery Barn, Star Gazing Deck, Barbeque Pits, Organic Garden, Artistic Arena.
• 3 towers of 10 floors each, comprising of 187 units of 3 and 4 BHKs. Construction in full swing across three towers
• Witnessing sharp price increase, total approx. project value increases from INR 650 Cr. to INR 900 Cr.
• Awarded as ‘Most Admired Upcoming Project
Of The Year’ by Berkshire Media Pvt. Ltd.
Artist’s Impressions
10
TARC TRIPUNDRA PHOTO GALLERY AND SITE STATUS
ACTUAL PHOTOGRAPH
CURRENT SITE STATUS
11
CAMPAIGNS FOR TARC TRIPUNDRA
Print Media
Hoardings
Event for the Channel Partners
CAMPAIGN ON LAUNCH
Digital Campaign
SUSTENANCE CAMPAIGN
12
TARC PATEL ROAD RESIDENCES
Overview
Highlights
Gallery
Status
Estimated Duration
Project Details
Sales Potential
Total Area
Saleable Area
Launching Soon: Existing structure demolished, levelled up to 2nd basement.
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
international designers and architects from Singapore, Andy Fisher 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 500+ apartments
6.13 Acres
18 Lakh sq.ft.
Artist’s Impressions
13
TARC 63-A RESIDENCES
Overview
Highlights
Launching Soon: 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
Status
Estimated Duration
Project Details
Sales Potential
Total Area
Saleable Area
~INR 800 Cr.
6.95 Acres
6.5 Lakh sq. ft.
• Providing best
in class premium residential
fully- fitted apartments, along with exclusive club and community facilities
• Focus on increasing customer centricity with
experiential living
14
TARC MACEO PREMIUM RESIDENTIAL
Overview
Highlights
Gallery
Completed
• Best-in-class project in the vicinity with lush
natural surrounding
Status
Duration
Project Details
Sales Potential
Total Area
Saleable Area
OC Received
100% Sold-out status
15.75 Acres
16 Lakh sq. ft.
• Located
accessibility Expressway
at Sector from
91, Gurugram,
easy KMP/Dwarka
NH8,
• Offers 80% of open space, with abundant
green and water areas
• Club Tierra – a premium rendezvous with holistic living; offers amenities like infinity pool
• With final OC received,
the project stands completed with all amenities are operational. last units Witnessed high price appreciation, sold at INR 6,500 per sq. ft.
Actual Photograph
15
TARC MACEO PHOTO GALLERY
ACTUAL PHOTOGRAPHS
16
OPPORTUNITIES
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
18
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
Arijit Das Head- Design & Architecture
Sushil Singhal Head- Investor Relations
Amit Madan Head- People & Culture
Shuaib Ahmad Head- Sales & Marketing
Suneet Singh Head- Marketing
20
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
Engaged Takshashila Consulting, led by ex-McKinsey personnel team, who had build internal control, systems and organization structure
SHAREHOLDING PATTERN
(As on 31st March 2023)
>1% Holder- Non-Promoter category
Ashish Kacholia – 2.22%,
Vijaykumar Patel – 1.44%
21
FINANCIAL HIGHLIGHTS
5
HIGHLIGHTS: FY’23
• TARC
Tripundra
project
• Collections of INR 250 crores
• The
Company
has
hired
• Consistent
improvement
in top
line and bottom-line during
FY23
launched in Oct’22 achieved
in FY23
healthy booking numbers and a
sharp price escalation
• Compensation (Part 1) of INR
70 crores received from the
• Achieves Top line of INR 375
• TARC Maceo project attains
Government for land acquisition,
crores
• Profit after Tax stood at INR 21
crores
• Achieved project sales value of in FY23, crores
INR 520
surpassing initial
target of
INR
400 crores
100% sold-out status with full price completion
recent
and
escalation of ~ 45%.
Due
process
initiated
for
enhanced compensation
• Fulfilled
payment
obligations
• Extensive media campaign has
ahead of its time towards NCDs
been launched through digital,
obligations
print, hoardings and events to capture the market in and around Delhi NCR
• Debt reduction plan in FY24
functional heads with 20+
years of experience in luxury
real estate in India - Mr. Arijit
Das, Design & Architecture
Head, Mr. Shuaib Ahmad, Sales & Marketing Head, Ms. Suneet
Singh, Marketing Head and
• Additionally, we have been
joined by Mr. Sushil Singhal
in
the position of Investor Relations
Head
Financial & Operational Highlights
Business Highlights
Strong Cash Flow Generation
Management Pool
23
FINANCIALS – P&L HIGHLIGHTS (CONSOLIDATED)
Particulars
Total Income
EBITDA
PBT
PAT
FY’23
374.7
165.5
41.1
20.4
FY’22*
300.7
(134.4)
(229.3)
(232.8)
INR crores.
Q4 FY’23
Q4 FY’22
135.5
38.5
8.4
1.5
42.4
(239.7)
(282.9)
(242.7)
•
Total Income for FY23 at INR 374.7 crores
• EBITDA at INR 165.5 crores; EBITDA Margin at 44.2%, PAT at INR 20.4 crores;
• Revenue recognition based on completion. Project Sales Value 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
• Successfully completed land sales deals in last years 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.
24
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
FY’23
381.7
1,106.2
1,293.2
376.2
3,157.3
1,352.0
1,381.0
424.3
3,157.3
INR crores.
FY’22
600.3
1,065.2
1,069.5
244.1
2,979.1
1,332.1
1,173.6
473.4
2,979.1
25
KEY TAKEAWAYS
Immense Industry Opportunities
TARC: Building a Premium Luxury Brand
Delhi presents a vast opportunity of highly growing and sustainable luxury residential real estate
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
26
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
For more information contact:
Ernst & Young LLP Investor Relation Advisory
TARC Limited
investors@tarc.in www.tarc.in
Kunal Bhoite
Sumedh Desai
kunal.bhoite@in.ey.com
Sumedh.desai@in.ey.com
9833217607
9869776652
27