TARC Ltd

‘TARC is poised for accelerated growth. It indicates the proactive aggregation of competencies required to address

future markets'.

Dear shareholder,

I hope this message finds you and your loved ones well. I am immensely pleased to write to you after another eventful year of progress. We are proud to have accelerated our growth momentum through an unprecedented year in terms of Real Estate demand, especially in New Delhi & Gurugram, one of India's most dynamic real estate hubs. FY24 was a landmark year for TARC as we recorded our best-ever annual presales booking and collections. The superior performance is a touchstone to the growing trust in the TARC brand.

BHARAT. THE BEACON OF HOPE.

India has stood out resilient amidst the strong headwinds of catastrophic climate emergencies, geopolitical tensions, supply chains, energy volatility, and persistent inflation. With growth estimated at 8%, our country has outshone estimates by leading global and Indian economic powerhouses.

Bharat's success story of balancing economic growth and a vibrant democratic society has no parallel. As a result, my belief in India's growth story has never been higher. While economic cycles are getting increasingly hard to forecast, there is little doubt that India, already the world's fifth-largest economy, will become the world's third-largest economy well before 2030.

HOME OWNERSHIP IS SCALING

Over the next decade, India will witness a perhaps ‘once in a lifetime opportunity' of ensuring a huge surge in the demand for opulent-quality housing as we shed our status of being a low-income and transition into a middle-income economy.

As listed below, India's real estate sector will continue to be driven by multiple tailwinds.

1. Sustained economic growth will boost per capita income. 2. The Government's sustained focus on urbanisation. 3. The RBI's prudent mortgage and underwriting policies. 4. A burgeoning aspirational and educated population. These factors are creating a strong long-term demand upcycle.

LUXURY RESIDENCES ON A HIGH

The luxury residential segment continues to witness strong demand, well supported by tailwinds of demand drivers such as increasing incomes, a need for a better standard of living, and the growing base of aspirational consumers.

In the realm of luxury real estate, Delhi NCR stands tall, outshining other metropolitan regions in India. According to recent reports, the demand for luxury apartments in the National Capital Region (NCR) has soared, indicating a robust market trend.

As urbanisation keeps growing at an intense pace, affluent buyers are increasingly drawn towards opulent living spaces that offer comfort and prestige. This highlights the burgeoning demand for luxury residences in this part of the world, underscoring its supremacy over other major metros.

The allure of the region lies not only in its cosmopolitan vibe but also in its strategic positioning as a hub of economic activity. With a flourishing population of affluent professionals, entrepreneurs, and expatriates, the demand for upscale living spaces has surged.

The region's ascent as the epicentre of luxury real estate underscores its unwavering allure and investment potential in the ever-evolving urban living landscape.

The fast-evolving landscape indicates that the premium and luxury housing sector will sustain its appeal to the ever-growing number of people for whom elegant living spaces are an indispensable part of their lifestyle. This is already being supported by favourable market conditions driving healthy growth over the foreseeable future.

FY24, A YEAR OF NEW HIGHS

Our performance, once again, surpassed our goals. Our cash collection was the highest. This is a testament to the unflinching efforts of the entire team and vindicates our strategy to onboard industry veterans and skilled specialists into the organisation. Their astute thinking, smart strategies and disciplined execution have uplifted the TARC brand to a new high in the luxury residential space. It resonates with and has become a status symbol for discerning home buyers who aspire to premium living. This is reflected in the near sell-out of TARC Tripundra and the overwhelming response we received for TARC Kailasa. Our strong governance framework has further strengthened us, while reassuring our patrons to entrust us with their hard-earned investments and sometimes even life savings – we remain forever indebted to them for their trust in the team and the brand.

OUR PREPAREDNESS

I am convinced that luxury housing will soar to dazzling heights as India grows from a low-income to a middle & high income economy over this decade.

We have the experience and skills to deliver quality and scale at an accelerated pace. By forging the finest global partnerships and deploying the best people and processes, we create the best value for our customers.

We will deploy the growing liquidity to deleverage the Company and foster a compelling development pipeline to elevate the luxury living standard of the pin codes we serve. With our strategically aligned vision and alluring offerings that present an unbeatable value proposition, we will emerge more tenacious and robust.

GROWING RESPONSIBLY

Our commitment to creating a better life extends beyond our customers. As we continue on our assertive growth path, a commitment towards sustainability remains one of the key considerations of TARC's business strategies.

We have imbibed the philosophy of ‘Growing Responsibly' and strive to act in our community's and the planet's larger interests. We view sustainability as a business goal and our responsibility to leave a liveable and healthier planet for future generations.

In keeping with this aspiration, we are dedicated to incorporating sustainable practices into our projects. From energy-efficient designs to waste management strategies, we prioritise environmental stewardship without compromising quality or innovation. By embracing responsible construction practices, we aim to create sustainable spaces that enrich the lives of our stakeholders and promote a healthier planet.

MY GRATITUDE

I take great pride in representing TARC and express my gratitude to all our stakeholders, including our shareholders, value chain partners, employees and communities, for supporting us in our stride to make the TARC brand synonymous with sustainable developments. I want to take this opportunity to warmly thank the entire TARC team for working tirelessly to ensure superior customer satisfaction towards customers of some of India's finest luxury housing projects with impeccable service quality. This, in turn, enhances our brand appeal among prospective home buyers and will enable us to achieve our milestones in the times to come. Most importantly, I would like to thank you, our shareholders, for your overwhelming trust, support, guidance and confidence in TARC.

THE MESSAGE

The principal message I am sending out is that TARC is poised for accelerated growth over the medium term. We have consciously selected the word ‘poised' as it indicates a sense of preparedness and the proactive aggregation of competencies required to address future markets.