Exclusive Q&A With : Sanjay Dongre, EVP and Senior Fund Manager of UTI Mutual Fund
Updated on: 23 Jun 2016
Infrastructure has been one of the key areas of reforms since the time Narendra Modi took the top office. While unveiling the Setu Bharatam project, the Prime Minister noted that India is set to take a quantum leap in infrastructure and the government is committed to strengthening it. Will infrastructure be the next pocket of outperformance? Jinsy Mathew talks with Sanjay Dongre, EVP and Senior Fund Manager of UTI Mutual Fund (Fund Manager of UTI Infrastructure Fund and UTI Leadership Equity Fund) on the outlook of infrastructure sector.
What is your take on infra space which has been in spotlight over the last one year?
The spotlight is once again on infrastructure thanks to the various initiatives taken by the Government. However, there is no guarantee that infrastructure will be providing above average returns just because of the news around the sector. The important point to watch out here is how the earnings pan out. It would be a function of capex recovery in the economy.
Generally, it has been observed that infra as a theme tends to benefit the most when capex cycle revives. Therefore, given the gestation period, it would be reasonable to pencil in two to three years time to see meaningful returns being generated in this space.
Do you see the capital expenditure cycle reviving in medium term?