TCC Concept Ltd: Annual Report 2023-24 Analysis

Overview #

Comprehensive Analysis #

This analysis delves into the TCC Concept Limited annual report for the financial year 2023-24, examining its financial performance, business segments, identified risks, and ESG (Environmental, Social, and Governance) initiatives. Note that some data points are missing or presented vaguely (e.g., “XX offices across XX centers”), hindering a completely precise quantitative analysis.

I. Financial Performance:

The report presents both standalone and consolidated financial statements. The significant jump in consolidated figures compared to the standalone figures highlights the impact of acquisitions made during the year.

A. Standalone Financial Highlights (₹ in Lakhs):

B. Consolidated Financial Highlights (₹ in Lakhs):

The report only provides partial consolidated data for FY24, missing previous year’s figures. A direct comparison isn’t possible, but the substantial increase indicates the significant impact of acquisitions.

C. Financial Ratios (Standalone): The provided ratios are incomplete and lack a consistent base year for comparison. The drastic changes warrant further investigation and clarification from management.

D. Financial Ratio Analysis (Limitations): The provided standalone financial ratios are insufficient for robust analysis due to missing data and inconsistencies. The drastic percentage changes, particularly in gross and operating profit margins, demand detailed explanation and reconciliation from the management. The consolidated ratios are entirely absent.

II. Business Segments:

TCC Concept Limited operates through three primary subsidiaries, each contributing to different business segments:

A. Brantford Limited: This subsidiary is a technology-driven flexible office space aggregator, leveraging AI and machine learning for property evaluation, listing, and transactions. It offers zero brokerage services, generating revenue primarily through B2B channels. They have expanded into turnkey projects, conventional broking, and independent projects.

B. Altrr Software Solutions (TryThat.ai): This subsidiary provides an AI-powered real estate solutions platform, TryThat.ai. It offers lead generation, B2B database access, AI-driven customer engagement, and real-time data analytics. Future plans include CRM, a recommendations engine, and facility management tools.

C. Natural Environment Solutions Private Limited (NES): Acquired in August 2024, NES operates colocation data centers. This adds a significantly different business segment to the company’s portfolio. The report details the integration and the impact of NES are not well articulated.

III. Risks:

The report outlines several key risks:

A. Economic Volatility: Fluctuations in the global and Indian economies impact real estate demand and valuations.

B. Regulatory Challenges: Navigating complex real estate regulations and legal frameworks is a significant risk.

C. Technological Disruption: The rapid evolution of technology requires constant adaptation to maintain competitiveness.

D. Rising Costs: Increasing construction and land costs affect profitability and affordability.

IV. ESG (Environmental, Social, and Governance) Initiatives:

The report provides limited information on ESG initiatives. It mentions a push towards sustainable development and a green footprint in the Grade A office market exceeding 50%, but lacks concrete details about specific initiatives, targets, or metrics. Further disclosure is necessary for a complete assessment.

V. Conclusion:

The TCC Concept Limited annual report showcases significant revenue growth, particularly at the consolidated level, fueled by strategic acquisitions. However, the report lacks depth in several crucial areas:

• Financial Ratio Analysis: The absence of key financial ratios and inconsistencies in the provided data prevent a thorough assessment of financial health and performance. This requires rectification.
• Segment Performance: The report doesn’t offer a detailed breakdown of individual segment performance, revenue contribution, or profitability, making it difficult to assess the relative strength of each area.
• Risk Mitigation Strategies: While risks are identified, detailed mitigation strategies and their effectiveness are not fully explained.
• ESG Transparency: The report lacks sufficient detail about the company’s ESG initiatives, making it impossible to evaluate the sustainability of its practices.

The significant increase in consolidated revenues compared to standalone results points to the success of the acquisitions. However, a lack of thorough reporting and a general lack of clarity in many areas prevents a complete and accurate assessment of the Company’s overall performance, prospects, and ESG commitment. The company should prioritize improving the quality and comprehensiveness of its financial and non-financial reporting to enhance transparency and investor confidence.

Detailed Analysis #

Balance Sheet #

Asset Analysis #

The values for TCC Concept Limited’s assets, as reported in the annual report, are as follows (all figures in Indian Rupees in Lakhs):

• Total Assets (Standalone): ₹18,425.83 (as of March 31, 2024)

• Total Assets (Consolidated): ₹22,562.99 (as of March 31, 2024)

• Current Assets (Standalone): ₹727.84 (as of March 31, 2024)

• Current Assets (Consolidated): ₹6,919.80 (as of March 31, 2024)

• Cash and Cash Equivalents (Standalone): ₹5.75 (as of March 31, 2024)

• Cash and Cash Equivalents (Consolidated): ₹1,255.79 (as of March 31, 2024)

• Accounts Receivable (Standalone): ₹427.95 (as of March 31, 2024)

• Accounts Receivable (Consolidated): ₹2,937.84 (as of March 31, 2024)

• Inventory (Standalone): ₹0 (as of March 31, 2024)

• Inventory (Consolidated): ₹600.79 (as of March 31, 2024)

It’s crucial to remember that these figures are based on the information presented in the provided annual report. There are some ambiguities in the reporting, and some data points aren’t explicitly clear. A more detailed breakdown might be available in the complete, unredacted version of the annual report.

Liability Analysis #

Here’s a summary of the liability figures from TCC Concept Limited’s annual report, all amounts in Indian Rupees (₹) in Lakhs:

Standalone:

• Total Liabilities: ₹592.39 (as of March 31, 2024)
• Current Liabilities: ₹592.39 (as of March 31, 2024) (Note: The report doesn’t separately list long-term liabilities in the standalone statements.)
• Long-Term Debt: Not explicitly stated separately in the standalone section. The figure is embedded within non-current liabilities which include lease liabilities (₹127.59) and other non-current liabilities (₹3.52).
• Accounts Payable: ₹114.98 (as of March 31, 2024). This figure is broken down further into amounts due to micro, small, and medium enterprises and other creditors.

Consolidated:

• Total Liabilities: ₹3,146.98 (as of March 31, 2024)
• Current Liabilities: ₹1,839.34 (as of March 31, 2024). Note: This includes short-term borrowings, current portion of lease liabilities, trade payables, and other current liabilities. The consolidated section breaks down trade payables into MSMEs and others.
• Long-Term Debt: Not explicitly shown as a single line item but implicit within the total non-current liabilities (₹312.54). This includes long-term lease liabilities (₹250.02) and other non-current liabilities (₹54.44), and 8.08 for provisions.
• Accounts Payable: ₹1,840.52 (as of March 31, 2024). The consolidated presentation further breaks down accounts payable into MSMEs and other creditors.

Important Considerations:

• Lease Liabilities: A significant portion of both standalone and consolidated liabilities is attributed to lease liabilities. These are broken down into current and non-current portions in both reports.
• Data Discrepancies: Slight discrepancies might exist due to rounding in the report or the way different parts of the report present the data.
• Missing information: The consolidated report lacks certain data points from the previous year (FY22-23), therefore comparison is limited.

Always refer to the original report for the most accurate financial information. These figures are extracted from the text provided and might not reflect a perfect representation due to the challenges with interpreting the provided document’s formatting and occasional ambiguities.

Equity Analysis #

Here’s a breakdown of the shareholders’ equity, retained earnings, and share capital values for TCC Concept Limited, as presented in the annual report (all figures in Indian Rupees, in Lakhs):

Standalone:

• Shareholders’ Equity: ₹17,702.33 (as of March 31, 2024)
• Retained Earnings: ₹243.26 (as of March 31, 2024)
• Share Capital: ₹2,103.44 (as of March 31, 2024) This represents the total value of issued and paid-up equity shares.

Consolidated:

• Shareholders’ Equity: ₹17,000.02 (as of March 31, 2024)
• Retained Earnings: ₹1,644.39 (as of March 31, 2024)
• Share Capital: ₹2,103.44 (as of March 31, 2024) Note that the share capital remains the same in the consolidated report as in the standalone report, reflecting that no additional shares were issued at the consolidated level.

Important Notes:

• Other Equity: The standalone and consolidated reports include “Other Equity” components beyond share capital and retained earnings. These components primarily include the securities premium reserve (significantly larger in the consolidated report due to the acquisitions).
• Year-Over-Year Changes: The report does not provide the previous year’s data for consolidated figures which makes accurate comparison of those figures difficult.
• Data Extraction Challenges: The report’s presentation makes precise data extraction somewhat difficult in parts.

These values are extracted from the provided text. Always refer to the original annual report for the most accurate and complete financial data. Minor discrepancies might exist due to rounding or inconsistencies in the provided document.

Income Statement #

Operating Performance #

The revenue, cost of revenue, gross profit, operating expenses, and operating income figures for TCC Concept Limited, as reported in the annual report, are presented below (all figures in Indian Rupees, in Lakhs):

Standalone:

• Revenue: ₹480.42 (for the year ended March 31, 2024)
• Cost of Revenue: ₹218.54 (for the year ended March 31, 2024)
• Gross Profit: ₹261.88 (calculated as Revenue - Cost of Revenue: ₹480.42 - ₹218.54)
• Operating Expenses: The report doesn’t clearly separate operating expenses from other expenses. To calculate this you would need to sum employee benefits expense (₹22.40), finance costs (₹19.47), depreciation and amortization (₹36.87), and other expenses (₹111.41), resulting in a total of ₹190.15.
• Operating Income: ₹71.73 (calculated as Gross Profit - Operating Expenses: ₹261.88 - ₹190.15).

Consolidated:

• Revenue: ₹7,715.23 (for the year ended March 31, 2024)
• Cost of Revenue: ₹3,048.33 (for the year ended March 31, 2024). Note that this includes the cost of goods sold, which is present due to the acquistions in the Consolidated statements. The standalone report does not include this line item.
• Gross Profit: ₹4,666.90 (calculated as Revenue - Cost of Revenue: ₹7,715.23 - ₹3,048.33)
• Operating Expenses: The report doesn’t explicitly break down operating expenses. To calculate it, one would have to sum all expenses directly related to operations (this is not clear from the Consolidated report).
• Operating Income: The report does not separately state operating income. This would require further calculation based on a detailed breakdown of expenses (not available in provided text).

Important Notes:

• Expense Categorization: The annual report’s categorization of expenses isn’t entirely consistent and clear, making precise calculations challenging.
• Consolidated vs. Standalone: The consolidated figures are significantly larger than the standalone figures due to the acquisitions during the year. This makes direct year-over-year comparison difficult without the previous year’s consolidated information.
• Data Extraction: The formatting of the provided report makes extraction of the needed figures somewhat difficult at times.

The figures above are estimates based on the information available. Consult the original annual report for precise values and a complete breakdown of expenses.

Bottom Line Metrics #

Based on the provided annual report, here’s a summary of the Net Income, EBITDA, Basic EPS, and Diluted EPS values for TCC Concept Limited (all figures in Indian Rupees, in Lakhs, except for EPS which is per share):

Standalone:

• Net Income: ₹58.89 (for the year ended March 31, 2024)
• EBITDA: Not explicitly provided. To calculate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), you would need to take the profit before tax (₹80.20), add back depreciation and amortization (₹36.87), and add back the finance costs (₹19.47). This results in an EBITDA of ₹136.54.
• Basic EPS: ₹0.47 (for the year ended March 31, 2024)
• Diluted EPS: ₹0.45 (for the year ended March 31, 2024)

Consolidated:

• Net Income: ₹2,028.47 (for the year ended March 31, 2024)
• EBITDA: Not explicitly provided. Calculating EBITDA would require adding back interest, taxes, depreciation, and amortization to the profit before tax (₹2,703.90). This calculation cannot be completed without a clear breakdown of the expense categories from the provided text.
• Basic EPS: ₹21.77 (for the year ended March 31, 2024)
• Diluted EPS: ₹20.61 (for the year ended March 31, 2024)

Important Notes:

• EBITDA Calculation: The EBITDA calculations above are estimates due to the need to reconstruct the numbers from the partial information provided in the report. The report itself does not give a clear EBITDA figure.
• Consolidated vs. Standalone: The significant difference between standalone and consolidated figures is primarily due to the acquisitions made during the fiscal year. Previous year data is also incomplete for the consolidated figures.
• Data Precision: Minor discrepancies might arise from rounding or inconsistencies within the report itself.

It’s strongly recommended to always refer to the complete, original annual report for the most precise and reliable financial information. The calculations presented here are based on the limited data provided and may contain minor inaccuracies due to the ambiguities present in the formatting and content of the provided document.

Cash Flow #

Cash Flow Components #

Here’s a summary of the operating, investing, and financing cash flows for TCC Concept Limited, as reported in the annual report (all figures in Indian Rupees, in Lakhs):

Standalone:

• Operating Cash Flow: (₹86.90) for the year ended March 31, 2024. This represents a net use of cash in operating activities.
• Investing Cash Flow: (₹17,530.69) for the year ended March 31, 2024. This also represents a net use of cash in investing activities, primarily due to investments in subsidiaries.
• Financing Cash Flow: ₹17,623.20 for the year ended March 31, 2024. This is a net inflow of cash from financing activities, largely driven by the issuance of shares.

Consolidated:

• Operating Cash Flow: ₹76.84 (for the year ended March 31, 2024). This represents a net inflow of cash from operating activities.
• Investing Cash Flow: ₹1,417.78 (for the year ended March 31, 2024). This is a net inflow of cash from investing activities.
• Financing Cash Flow: ₹479.02 (for the year ended March 31, 2024). This represents a net inflow of cash from financing activities.

Important Notes:

• Indirect Method: The cash flow statements are prepared using the indirect method.
• Data Interpretation Challenges: The consolidated cash flow statement includes certain items that are difficult to interpret with complete accuracy from the provided text.

These figures are extracted from the provided annual report. Always refer to the original document for the most accurate information. There are some ambiguities and lack of detailed supporting information present in the text provided which make completely precise interpretation of these figures somewhat difficult.

Cash Flow Metrics #

Based on the information provided in the annual report, here’s what we can determine regarding free cash flow, capital expenditure, and dividends:

Free Cash Flow:

The annual report does not directly provide a free cash flow figure. Free cash flow (FCF) is typically calculated as operating cash flow minus capital expenditures. Using the data from the Statement of Cash Flows:

• Standalone: Operating cash flow was a negative ₹86.90 lakhs. Capital expenditures are not explicitly stated but can be estimated from the investing cash flow section, which shows a significant outflow related to the purchase of ROU assets (-₹221.21 Lakhs), non-current other financial assets (-₹11.00 Lakhs), and investment in subsidiaries (-₹16,764.87 Lakhs). A precise calculation is not possible without further details.

• Consolidated: Operating cash flow was ₹76.84 lakhs. Capital expenditures are likewise not directly stated but are implicit within the investing cash flows.

Capital Expenditure (CAPEX):

The annual report doesn’t provide a single, clearly defined CAPEX number. However, we can estimate it from the investing activities section of the cash flow statement:

• Standalone: The major component of investing cash outflow appears to be the purchase of ROU assets at (₹221.21 Lakhs). Therefore, a reasonable estimate for standalone CAPEX would be approximately ₹221.21 Lakhs.

• Consolidated: The consolidated cash flow statement shows a purchase of property, plant, and equipment at ₹3,287.51 Lakhs (net of proceeds from sales).

Dividends Paid:

The annual report explicitly states that no dividends were declared or paid during the year, neither in the standalone nor in the consolidated reports.

Important Considerations:

• Indirect Method: The cash flow statement uses the indirect method, making a precise CAPEX calculation from the provided information difficult.
• Data Ambiguity: The annual report’s presentation could be improved to offer more direct and easily accessible figures on CAPEX and FCF. The absence of a clearly stated free cash flow is a notable deficiency.
• Data Limitations: The provided document does not contain sufficient information for an accurate calculation of free cash flow for both Standalone and Consolidated statements.

To obtain precise figures for FCF and CAPEX, consult the complete, unabridged version of the annual report. The values above are estimations based on interpretations from the limited data provided, and may not be perfectly accurate.

Profitability Ratios #

Calculating precise profitability ratios for TCC Concept Limited requires a more complete and clearly presented financial statement. The provided annual report has some inconsistencies and missing data that prevent entirely accurate computations. However, we can make estimates based on the available information. Remember these are approximations, and should not be considered definitive.

Standalone:

• Gross Profit Margin: (Gross Profit / Revenue) * 100 = (₹261.88 / ₹480.42) * 100 = 54.5% (approx.)

• Operating Profit Margin: (Operating Income / Revenue) * 100 = (₹71.73 / ₹480.42) * 100 = 14.9% (approx.)

• Net Profit Margin: (Net Profit / Revenue) * 100 = (₹58.89 / ₹480.42) * 100 = 12.3% (approx.)

• Return on Equity (ROE): (Net Profit / Average Shareholders’ Equity) * 100. Requires the previous year’s equity to calculate the average. Data is insufficient for precise calculation.

• Return on Assets (ROA): (Net Profit / Average Total Assets) * 100. Requires previous year’s assets to compute the average. Insufficient data for calculation.

Consolidated:

• Gross Profit Margin: (Gross Profit / Revenue) * 100 = (₹4,666.90 / ₹7,715.23) * 100 = 60.5% (approx.)

• Operating Profit Margin: Cannot be accurately calculated due to incomplete data on operating expenses in the consolidated statement.

• Net Profit Margin: (Net Profit / Revenue) * 100 = (₹2,028.47 / ₹7,715.23) * 100 = 26.3% (approx.)

• Return on Equity (ROE): (Net Profit / Average Shareholders’ Equity) * 100. Requires the previous year’s equity. Insufficient data for precise calculation.

• Return on Assets (ROA): (Net Profit / Average Total Assets) * 100. Requires previous year’s assets. Insufficient data for calculation.

Important Considerations:

• Data Limitations: The provided data is incomplete, particularly for the consolidated financial statements. Accurate calculations of average equity and average total assets are impossible.
• Expense Classification: The classification of expenses is not perfectly clear in the provided report, which makes precise calculation of operating income and, consequently, operating margin, more difficult.
• Approximations: The figures above are estimates based on the information provided. They should be considered approximate, and may differ slightly from the values calculated from a full and properly formatted annual report.

For completely precise profitability ratios, refer to the complete and unredacted annual report of TCC Concept Limited. The calculations presented above are estimates based on partial and sometimes ambiguous information, and might not be precisely accurate.

Liquidity Ratios #

Calculating liquidity ratios for TCC Concept Limited requires a precise understanding of its current assets and current liabilities. The provided annual report presents some ambiguities that make completely precise calculations difficult. The following are estimates based on the available information, and should be considered approximations:

Standalone:

• Current Ratio: (Current Assets / Current Liabilities) = ₹727.84 / ₹592.39 = 1.23 (approx.)

• Quick Ratio: (Current Assets - Inventories / Current Liabilities) = (₹727.84 - ₹0) / ₹592.39 = 1.23 (approx.) (Inventory is zero in the standalone report).

• Cash Ratio: (Cash and Cash Equivalents / Current Liabilities) = ₹5.75 / ₹592.39 = 0.01 (approx.)

Consolidated:

• Current Ratio: (Current Assets / Current Liabilities) = ₹6,919.80 / ₹1,839.34 = 3.76 (approx.)

• Quick Ratio: (Current Assets - Inventories / Current Liabilities) = (₹6,919.80 - ₹600.79) / ₹1,839.34 = 3.42 (approx.)

• Cash Ratio: (Cash and Cash Equivalents / Current Liabilities) = ₹1,255.79 / ₹1,839.34 = 0.68 (approx.)

Important Notes:

• Data Ambiguities: The provided report has some inconsistencies and does not explicitly separate all current asset and liability components. There is some ambiguity in precisely what comprises “current assets” in some sections.
• Approximations: The ratios above are approximate calculations based on available data. They may differ slightly from figures calculated from a complete, unredacted annual report.
• Inventory: The standalone report lists inventory as zero. This significantly impacts the quick ratio calculation for the standalone figures. The consolidated statement however lists an inventory value.
• Year-Over-Year Comparison: The consolidated report lacks the previous year’s data, preventing meaningful year-over-year comparisons.

For the most precise liquidity ratio calculations, always refer to the original, complete annual report. The figures above should be viewed as estimates derived from incomplete and sometimes ambiguous data.

Efficiency Ratios #

Calculating efficiency ratios for TCC Concept Limited accurately requires a more complete dataset than what’s provided in the excerpt of the annual report. The report has some missing data and inconsistencies that hinder precise calculations. Below are estimates based on the information provided. These are approximations and should not be considered definitive financial analysis.

Standalone:

• Asset Turnover: (Revenue / Average Total Assets). Requires the previous year’s total assets to calculate the average. Insufficient data.

• Inventory Turnover: (Cost of Goods Sold / Average Inventory). The standalone report shows zero inventory. Therefore, this ratio is undefined (division by zero).

• Receivables Turnover: (Revenue / Average Accounts Receivable). Requires the previous year’s accounts receivable to calculate the average. Insufficient data.

Consolidated:

• Asset Turnover: (Revenue / Average Total Assets). Requires the previous year’s total assets to calculate the average. Insufficient data.

• Inventory Turnover: (Cost of Goods Sold / Average Inventory) = ₹3,048.33 / (Average Inventory). Requires the previous year’s inventory figure to calculate the average. Insufficient data for precise calculation.

• Receivables Turnover: (Revenue / Average Accounts Receivable). Requires the previous year’s accounts receivable. Insufficient data for precise calculation.

Important Considerations:

• Average Values: Calculating turnover ratios requires using average values for assets, inventory, and receivables (taking the average of the beginning and ending balances for the fiscal year). The report lacks the necessary previous year data for these calculations.
• Data Inconsistency: The report lacks a completely consistent presentation of the necessary data elements for completely accurate calculations.
• Cost of Goods Sold: The standalone report lacks a “Cost of Goods Sold” line item. The consolidated report does include this item.
• Approximations: The above are just estimations using the limited data available, not a completely thorough financial analysis.

To conduct a precise analysis of efficiency ratios, always consult the full, unredacted annual report for TCC Concept Limited. The estimations presented above have significant limitations due to insufficient and inconsistently presented information.

Leverage Ratios #

Calculating leverage ratios for TCC Concept Limited with precision is hampered by the incomplete and inconsistent data in the provided annual report. The following are estimated leverage ratios, and should be treated as approximations:

Standalone:

• Debt-to-Equity Ratio: (Total Debt / Shareholders’ Equity). The report does not explicitly state total debt as a single line item. To approximate this, we could sum the lease liabilities (₹193.62 Lakhs) and other borrowings (₹356.19 Lakhs). Using the sum as total debt would result in a total of ₹549.81 lakhs. The approximate Debt-to-Equity ratio would then be: ₹549.81 / ₹17,702.33 = 0.03 (approx.).

• Debt-to-Assets Ratio: (Total Debt / Total Assets) = (₹549.81 / ₹18,425.83) = 0.03 (approx.) using the approximation of debt from above.

• Interest Coverage Ratio: (Earnings Before Interest and Taxes (EBIT) / Interest Expense). The standalone report doesn’t directly provide EBIT. It also does not have a clearly delineated interest expense figure. Therefore, a precise calculation is not possible.

Consolidated:

• Debt-to-Equity Ratio: (Total Debt / Shareholders’ Equity). To approximate total debt, one could sum the current liabilities (₹1,839.34 Lakhs) and non-current liabilities (₹312.54 Lakhs) resulting in a total of ₹2,151.88 lakhs. The Debt-to-Equity ratio would then be ₹2,151.88 / ₹17,000.02 = 0.13 (approx.).

• Debt-to-Assets Ratio: (Total Debt / Total Assets) = (₹2,151.88 / ₹22,562.99) = 0.09 (approx.) using the approximation of debt from above.

• Interest Coverage Ratio: (Earnings Before Interest and Taxes (EBIT) / Interest Expense). EBIT and interest expense aren’t explicitly stated; therefore, a precise calculation is impossible.

Important Considerations:

• Data Limitations: The provided annual report excerpt lacks complete and consistent data for a completely accurate computation of leverage ratios. Many data points are either missing or indirectly implied.
• Debt Definition: The definition of “total debt” can vary depending on the inclusion criteria (short-term borrowings, current portion of long-term debt, lease obligations, etc.). The calculations above use reasonable approximations given the information provided, but may not perfectly represent the company’s true debt position.
• Approximations: The ratios provided are best estimates and should be treated as approximations.

For precise leverage ratio calculations, consult the complete and properly formatted annual report of TCC Concept Limited. The approximations presented here are based on incomplete and sometimes ambiguously presented data. A thorough financial analysis would require access to the complete annual report.

Market Analysis #

Market Metrics #

The provided annual report excerpt does not contain information on market capitalization, P/E ratio, P/B ratio, dividend yield, or dividend payout ratio. These metrics require readily available market data (stock price and number of outstanding shares) which are not included in the provided text. To obtain these values, you would need to consult a financial data provider (like Yahoo Finance, Google Finance, Bloomberg, etc.) and input the company’s stock ticker symbol (BSE: 512038).

The annual report does state that no dividends were paid during the fiscal year. Therefore, both the dividend yield and dividend payout ratio would be 0%.

In short: The provided document gives no information for the calculation of market cap, PE ratio, PB ratio, and dividend yield. Dividend payout ratio and dividend yield are both 0%. You need to find this information using a financial data service using the company’s stock ticker.

Business Analysis #

Segment Analysis #

The provided annual report does not offer a detailed breakdown of business segments to calculate growth rates, operating margins, market shares, or geographic presence with complete accuracy. The information presented is fragmented and lacks the necessary data points for a full analysis. Here’s a summary of what can be gleaned from the report:

Business Segments:

The report primarily discusses three main business segments, operating through separate subsidiaries:

1. Flexible Office Space Aggregation (Brantford Limited): This segment focuses on providing flexible office spaces across India. The report mentions a significant revenue increase in this segment for FY24 compared to the previous year. Precise revenue figures, growth rates, and market share are not specified directly in the report. They operate in multiple cities across India but the exact number and locations are not detailed. Key products include various workspace options ranging from budget-friendly to premium spaces, along with turnkey office design and development projects.

2. AI-Powered Real Estate Solutions (Altrr Software Solutions/TryThat.ai): This segment offers a technology platform that provides lead generation, AI-driven customer engagement, and real-time data analytics to real estate professionals. Revenue figures for this segment are not explicitly detailed in the report. The growth rate and market share information is also not clearly stated. Their geographic reach is largely unspecified, but implied to be related to Brantford’s presence in India. Key products include their TryThat.ai platform with its lead management, CRM, and analytics features.

3. Colocation Data Centers (NES): This segment, added through the acquisition of Natural Environment Solutions, involves the operation of colocation data centers. The report offers limited detail concerning its revenue, growth rate, market share, or geographic scope.

Data Limitations:

The report significantly restricts a precise quantitative analysis of the segments due to the following issues:

• Missing Data: The annual report lacks crucial data points needed to calculate growth rates and operating margins for each segment.
• Consolidated vs. Standalone: The consolidated numbers reflect the acquisitions but lack prior year data for precise year-over-year comparisons. The standalone numbers don’t give a clear breakdown by segment.
• Unspecified Market Shares: The report does not provide any market share data for any of its business segments.
• Limited Geographic Detail: The report does not explicitly define the geographic presence of each segment beyond a general mention of operations in India.

To conduct a thorough analysis of the business segments, including growth rates, margins, market shares, and geographic reach, one would require access to the complete annual report, along with additional market research data. The summary presented above is based only on the limited and fragmented information available within the provided text excerpt.

Risk Management #

Risk Assessment #

The provided annual report excerpt identifies several key risk factors but lacks the detailed information necessary for a complete risk assessment matrix. The report doesn’t explicitly assign likelihood or impact severity scores or describe detailed mitigation strategies. However, we can categorize and describe the risks based on what the report provides:

I. Key Risk Factors:

The report mentions the following key risk factors, which can be categorized as follows:

A. Economic Risks:

• Economic Volatility and Market Fluctuations: This encompasses general economic downturns, inflation, and market uncertainties that can negatively affect real estate demand, property values, and the overall business environment. The report doesn’t specify the likelihood or impact severity of this risk or discuss mitigation strategies.

• Rising Costs and Affordability Concerns: Increasing construction costs, land prices, and taxes create challenges for both developers and buyers, impacting affordability and potentially reducing demand for real estate.

B. Operational Risks:

• Regulatory Hurdles and Legal Complexities: Navigating complex real estate regulations, zoning laws, and legal procedures poses significant operational challenges and potential delays. The report doesn’t explain mitigation measures or assess the likelihood of issues.

• Technology Disruption and Innovation: Keeping pace with technological advancements in the real estate sector is crucial. Failure to adapt could lead to obsolescence and loss of competitiveness. The report does not assess the likelihood or severity of this risk or offer mitigation strategies.

• Regulatory Challenges (Specific to property transactions): The complexity and time-consumption associated with property transactions, obtaining necessary clearances and navigating regulatory requirements pose operational risks.

C. Financial Risks (Implicit):

Although not explicitly categorized as such, financial risks are implicitly present:

• Credit Risk: The risk of non-payment from clients or failure of counterparties to meet obligations, especially related to accounts receivable and other financial assets.

II. Missing Information:

The annual report significantly lacks the following information necessary for a complete risk assessment:

• Likelihood Scores: The report does not assign probability or likelihood scores to the identified risks.
• Impact Severity Scores: No qualitative or quantitative impact assessments (high, medium, low; financial impact estimates) are provided for the identified risks.
• Mitigation Strategies: The report mentions some general strategies, but does not provide detailed plans for mitigating each of the risks. A comprehensive risk management plan needs to be articulated.
• Risk Trends: The report does not analyze emerging trends that could either increase or reduce the likelihood or impact of these risks.

III. Conclusion:

The report identifies key risk factors facing TCC Concept Limited. However, to provide investors with a full understanding of the company’s risk profile, a comprehensive risk assessment needs to be presented. This should include explicit likelihood and impact assessments, detailed mitigation strategies, and an analysis of future risk trends. The current risk discussion is too general to be useful for investment decision-making.

Strategic Overview #

Management Assessment #

TCC Concept Limited’s annual report highlights several key strategies, competitive advantages, market conditions, challenges, and opportunities, though some of this information is presented vaguely or implicitly.

I. Key Strategies:

• Technology-Driven Approach: A core strategy is leveraging AI and machine learning to streamline operations, improve efficiency, and enhance customer experience. This is evident in both Brantford’s office space aggregation and TryThat.ai’s platform.

• Diversification: The company is diversifying its business model through acquisitions into different but related areas, such as colocation data centers (NES). This strategy aims to reduce dependence on any single segment and create more resilient revenue streams.

• B2B Focus: The Brantford segment is intentionally focused on B2B partnerships, aiming to establish long-term relationships with developers, investors, and corporations rather than solely relying on individual clients.

• Client-Centric Approach: The report emphasizes a commitment to exceptional customer service and building strong client relationships as a key strategy for growth and loyalty.

• Strategic Acquisitions: The company’s approach is to strategically acquire complementary businesses to expand its product and service offerings and enter into new markets quickly.

II. Competitive Advantages:

• Technology Differentiation: The use of AI and machine learning is positioned as a key differentiator, enabling faster transactions, better data analysis, and more efficient processes compared to traditional real estate brokers.

• Zero-Brokerage Model (Brantford): This model can attract clients seeking cost-effective solutions, providing a competitive advantage over traditional brokerage firms that charge commissions.

• Integrated Platform (TryThat.ai): TryThat.ai’s integrated platform aims to connect all stakeholders in the real estate ecosystem, offering a comprehensive and efficient solution compared to fragmented services.

• Experienced Management Team: The report highlights the experience and expertise of its management team as a crucial asset, enabling effective decision-making and strategic navigation.

III. Market Conditions:

• Strong Indian Economy: The report notes the resilience and growth of the Indian economy, presenting this as a favorable overall market backdrop for the real estate sector.

• Increased Demand for Office Space: The easing of pandemic restrictions and the gradual return to office work have led to increased demand for office spaces, especially flexible and high-quality options.

• Growing Adoption of Technology: The real estate sector is increasingly adopting technology, creating both opportunities and challenges for companies.

• Increased demand for secondary residence and luxury housing: Increased consumer confidence and economic growth have fueled demand for vacation properties and luxury housing.

IV. Challenges:

• Economic Uncertainty: Global and domestic economic fluctuations pose a significant challenge, impacting demand, prices, and investor sentiment in the real estate sector.

• Regulatory Complexity: Navigating the complex regulatory landscape adds to operational challenges and can cause delays.

• Competition: The real estate sector is competitive, requiring ongoing innovation and adaptation to stay ahead.

• Rising Costs: Increasing construction, land, and operating costs pose challenges to profitability and affordability.

V. Opportunities:

• Growing Indian Population: The large and growing population of India fuels a robust demand for housing and commercial real estate.

• Rising Middle-Class Incomes: Increased disposable income leads to higher purchasing power and greater demand for real estate, especially in the luxury segment.

• Technological Advancements: Technological innovations in areas like AI and data analytics provide opportunities for efficiency improvements and the development of innovative real estate services.

• Demand for secondary residence and luxury housing: The continued demand for secondary homes and luxury properties presents notable growth potential.

• Expanding into new business segments: The acquisition of NES and other companies allows TCC Concept to take advantage of opportunities in areas like colocation data centers.

VI. Conclusion:

TCC Concept Limited’s strategies focus on technology, diversification, and a client-centric approach. However, the report lacks a detailed explanation of the specific strategies implemented in the context of each segment. The discussion of challenges and opportunities remains rather general. More specific strategic plans and market analysis would significantly improve investor understanding of the company’s outlook and ability to navigate its business environment.

ESG Ratings #

The provided annual report excerpt does not include any ESG ratings from any rating agencies. The report mentions some general commitments to sustainability but does not provide specific scores or ratings from organizations like MSCI, Sustainalytics, Refinitiv, or others that provide ESG assessments. To find ESG ratings, you’d need to consult these rating agencies directly or use financial data platforms that aggregate such information, inputting the company’s stock ticker symbol.

ESG Initiatives #

The provided annual report excerpt offers limited detail on TCC Concept Limited’s Environmental, Social, and Governance (ESG) performance. The information is largely qualitative and lacks specific metrics or targets. Here’s a summary of what is mentioned:

I. Environmental Initiatives:

The report mentions that the green footprint in the Grade A office market has increased and surpassed 50%. However, it does not describe specific environmental initiatives undertaken by the company (e.g., energy efficiency measures, waste reduction programs, sustainable building materials used). There is no mention of carbon footprint data. There is no articulation of sustainability goals in the environmental context.

II. Social Initiatives:

The report is largely silent on social initiatives. There is no mention of specific social programs, community engagement efforts, employee diversity, or initiatives related to human rights or fair labor practices. There is no articulation of sustainability goals in the social context.

III. Governance Practices:

The report discusses corporate governance aspects such as board composition, audit committee activities, remuneration, and related party transactions. However, it does not explicitly detail specific governance policies or practices that could be evaluated under ESG parameters (e.g., anti-corruption measures, whistleblower protection, ethical sourcing of materials). There is no articulation of sustainability goals in the governance context.

IV. Sustainability Goals:

The report lacks a formal articulation of explicit sustainability goals. There’s mention of a commitment to sustainable development, but no measurable targets or timeframes are provided for environmental, social, or governance improvements.

V. Conclusion:

TCC Concept Limited’s annual report presents a very limited picture of its ESG performance. While general statements are made regarding sustainability, the absence of concrete data, specific initiatives, and measurable sustainability goals prevents a comprehensive ESG assessment. The company should prioritize providing more detailed information and metrics to enhance transparency and accountability.

Additional Information #

Operational Metrics #

The provided annual report excerpt does not specify the R&D expenditure or the precise employee count for TCC Concept Limited. While the report mentions the company’s use of AI and machine learning and its investment in technology, it does not provide a numerical value for R&D spending. Similarly, while the report mentions the number of employees is “[ ]” the actual count is missing. To find this information you would need to consult the complete annual report or other publicly available company disclosures.

Key Events #

The TCC Concept Limited annual report highlights several significant events during the fiscal year 2023-24:

• Name Change: The company changed its name from “AASWA TRADING AND EXPORTS LIMITED” to “TCC CONCEPT LIMITED.”

• Acquisitions: The company made several significant acquisitions:

  • Brantford Limited and EMF Clinic Private Limited: Acquired in June 2023 through a share swap.
  • Altrr Software Services Limited: Acquired in January 2024 through a share swap.
  • Natural Environment Solutions Private Limited (NES): Acquired in August 2024 through a share swap. This acquisition added a colocation data center business to the company’s portfolio.

• Fundraising: The company raised ₹275 crore through a private placement of equity shares in April 2024.

• Conversion of Debentures: Compulsory Convertible Debentures (CCDs) were converted into equity shares in May 2024.

• Increase in Authorized Share Capital: The company increased its authorized share capital to ₹40 crore.

• Shift of Registered and Corporate Office: The company shifted its registered and corporate office from Ahmedabad, Gujarat to Pune, Maharashtra.

These events significantly impacted the company’s size, scope of operations, and financial performance, particularly the acquisitions and fundraising. The report’s narrative does not offer details into any challenges or problems associated with these transitions, however.

Audit Information #

Auditor’s Opinion:

The independent auditor, Mehra Goel & Co., Chartered Accountants, issued an unqualified (clean) opinion on both the standalone and consolidated Ind AS financial statements of TCC Concept Limited for the year ended March 31, 2024. This means the auditors found the financial statements to be fairly presented in accordance with Indian Generally Accepted Accounting Principles (Ind AS) and did not identify any material misstatements. A separate report was issued on the internal financial controls of TCC Concept Limited, however this report resulted in a disclaimer of opinion because the required information was not provided.

Key Accounting Policies:

The annual report outlines several key accounting policies employed by TCC Concept Limited. Key highlights include:

• Basis of Preparation: The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, and other relevant provisions of the Companies Act, 2013. They are presented under the historical cost convention on an accrual and going concern basis, except for certain financial assets and liabilities measured at fair value.

• Revenue Recognition: The company applies Ind AS 115, “Revenue from Contracts with Customers,” recognizing revenue when or as control of promised goods or services transfers to a customer. Specific methods (input method for time-and-material contracts and output method for fixed-price contracts) are used depending on the type of contract. Variable consideration and significant financing components are also considered.

• Property, Plant, and Equipment: These assets are stated at cost, less accumulated depreciation and impairment losses. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

• Intangible Assets: Intangible assets are measured at cost less accumulated amortization and impairment losses. Amortization is applied on a straight-line basis over their estimated useful lives.

• Foreign Currency Transactions: Transactions in foreign currencies are recorded at the spot rate at the transaction date, with exchange differences recognized in profit or loss.

• Financial Instruments: Financial assets and liabilities are classified and measured according to Ind AS 109, considering amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. An expected credit loss (ECL) model is used for measuring impairment losses on financial assets.

• Leases: The company applies Ind AS 116, “Leases,” recognizing right-of-use assets and lease liabilities for lease arrangements, except for short-term leases and leases of low-value assets.

• Employee Benefits: Employee benefits are accounted for in accordance with Ind AS 19, “Employee Benefits,” distinguishing between defined contribution and defined benefit plans.

• Income Taxes: Tax expense includes current and deferred income taxes, calculated based on enacted tax rates and tax laws at the reporting date.

• Provisions and Contingent Liabilities: Provisions are recognized when a present obligation exists and an outflow of resources is probable and can be reliably estimated. Contingent liabilities are disclosed but not recognized in the financial statements.

• Segment Reporting: The company follows Ind AS 108, “Operating Segments,” reporting information consistent with internal reporting provided to the chief operating decision-maker.

• Fair Value Measurements: The company uses a fair value hierarchy, classifying assets and liabilities based on the lowest level of input that is significant to the fair value measurement.

These are summaries of the key accounting policies. Refer to the complete annual report for detailed descriptions and explanations.