Raymond Realty's Bold New Strategy: Only High-Return Projects

Raymond Realty plans to only pursue development deals with profit margins of 20% or more. As it prepares for a stock market debut, the entity aims to launch projects valued between Rs 6-10,000 crore. Chairman Gautam Singhania stresses financial discipline despite rising property prices.

Raymond Realty, a significant player in real estate, has announced that it will not enter into development deals unless they promise a profit margin exceeding 20%. This declaration comes ahead of the company's much-anticipated debut on the stock exchange on Tuesday.

Chairman and Managing Director Gautam Singhania expressed concerns over what he termed 'heated' market conditions, emphasizing the importance of financial discipline. He insisted on only engaging in financially viable projects, labeling some current property deals as too risky even for gamblers.

CEO Harmohan Sahni outlined the strategy for achieving these profit targets, revealing that out of 1,400 potential projects evaluated, only six were selected. Raymond Realty aims for a 15% growth in topline, with operating profit margins hitting the 20% mark, by focusing on projects selling units between Rs 1-5 crore.

(With inputs from agencies.)