TARC Ltd. reported a significant net loss of INR 67.36 crore for the quarter ending September 30, 2024, compared to a profit of INR 1.06 crore in the same quarter last year. The company's income dropped drastically by 85.5%, falling from INR 34.67 crore to INR 5.02 crore. Despite the loss, TARC took proactive steps to manage its debt, including redeeming INR 1,000 crore in Series A debentures. Additionally, its subsidiaries raised funds through secured debentures and loans. These efforts are aimed at strengthening the company's financial position and improving its liquidity in the challenging period.
TARC Ltd. faced a significant financial setback in the quarter ending September 30, 2024, reporting a net loss of INR 67.36 crore, a sharp contrast to the profit of INR 1.06 crore recorded during the same period last year. The company's income also plummeted by a staggering 85.5%, falling from INR 34.67 crore to just INR 5.02 crore.
Despite these challenges, TARC has been actively working on debt management and restructuring its financials. The company took decisive action by redeeming a portion of its Series A debentures, making a total payment of INR 1,000 crore, which includes INR 547.92 crore in principal and INR 452.07 crore in interest and premium. These moves are part of the company's ongoing efforts to reduce its debt burden and improve liquidity.
TARC's financial position, as of September 30, 2024, shows a net worth of INR 1,176.10 crore, with a gross debt-to-equity ratio of 1.63. The current liability ratio stands at 0.50, while the total debt-to-assets ratio is 0.49, reflecting the company's relatively high leverage.
To further strengthen its financial position, two of TARC's subsidiaries raised funds during the quarter. Echo Buildtech issued 3,500 secured debentures worth INR 35 crore and secured a term loan of INR 365 crore. Meanwhile, TARC Projects raised INR 75 crore through 7,500 secured debentures and secured a term loan of INR 595 crore.
Although TARC has faced significant losses and a sharp decline in income, the company is taking proactive steps to manage its debt and raise capital through its subsidiaries, aiming to improve its financial stability in the coming quarters.
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